Editor's Review

The levy is to be paid by both the employee and the employer at a rate of 1.5 percent of the employee’s total monthly salary.

Several workers will face a double deduction for the Housing levy this month of August after the Government backdated the housing levy following the court ruling on July 28. 

The Ministry of Lands, Public Works, Housing, and Urban Development in a notice on Wednesday, August 2 said the Housing Levy deduction took effect on July 1.

This means that many workers who had been paid their July salaries without the deduction will have to brace for that.

“The levy is to be paid by both the employee and the employer at a rate of 1.5 percent of the employee’s total monthly salary by the employee, and 1.5 percent of the employee’s monthly total salary by the employer, in accordance with the Finance Act 2023,” read part of the notice.

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A housing project under construction.

The lecy is set to be collected by the Kenyan Revenue Authority on behalf of the Kenyan government.

“KRA will issue a communication advising on the mode of collection,” the notice added.

The court of appeal on Thursday, July 28, lifted the suspension imposed on the Finance Act, 2023 paving the way for its implementation.