Housing Levy Calculator — Kenya (2026)
Calculate the 1.5% Housing Levy deduction from gross pay. Both employee and employer contribute 1.5% each (3% total).
2026 Rates
Last verified: Today
Assumptions & Rates
Housing Levy rates and rules used for the calculation (2026).
Who pays
How it's computed
How This Housing Levy Calculator Works
Understanding the step-by-step process of Housing Levy contribution calculation in Kenya
Step 1: Determine Your Gross Pay Base
We start by identifying your gross pay, which is the base for Housing Levy calculations. This includes your basic salary plus any taxable allowances. Non-taxable allowances are excluded from the calculation base, similar to SHIF and other statutory deductions.
Step 2: Apply the 1.5% Employee Contribution
The employee Housing Levy is calculated at 1.5% of your gross pay. This amount is deducted from your salary each month. For example, if your gross pay is KES 100,000, your employee contribution is KES 1,500 (1.5% of 100,000). Unlike NSSF, there is no upper cap.
Step 3: Calculate the 1.5% Employer Contribution
Your employer also contributes 1.5% of your gross pay to the Housing Levy. This is an additional cost to the employer and does not come from your salary. Using the KES 100,000 example, the employer contributes another KES 1,500, bringing the total to KES 3,000 per month.
Step 4: Calculate Total Housing Levy
The total Housing Levy is the sum of employee and employer contributions (3% combined). This money goes to the Affordable Housing Fund to finance government housing initiatives. Contributors may be eligible for benefits such as priority access to affordable housing units or refunds according to government regulations.
Understanding Your Housing Levy Results
What each line in your Housing Levy breakdown means and how to interpret your contributions
Employee Contribution (1.5%)
This is the amount deducted from your salary each month for the Housing Levy. It's calculated as 1.5% of your gross pay with no upper cap. This deduction appears on your payslip alongside PAYE, NSSF, and SHIF deductions.
Employer Contribution (1.5%)
Your employer contributes an equal 1.5% on your behalf. This doesn't come from your salary but is an additional cost to the employer. Both contributions go to the Affordable Housing Fund to support Kenya's affordable housing program.
Gross Pay Base
The amount used to calculate your Housing Levy. This is typically your basic salary plus taxable allowances. Non-taxable allowances are excluded. Verify with your HR department which allowances are included in your specific case.
Total Housing Levy (3%)
The combined employee and employer contributions. This is the total amount going into the Affordable Housing Fund monthly on your behalf. At KES 100,000 gross, the total monthly contribution is KES 3,000, accumulating to KES 36,000 annually.
No Upper Cap
Unlike NSSF which caps at KES 108,000 pensionable pay, the Housing Levy has no upper limit. The 1.5% applies to your entire gross salary regardless of how high it is. Higher earners contribute proportionally more to the affordable housing initiative.
Potential Benefits
Contributors to the Housing Levy may be eligible for benefits such as priority access to affordable housing units, refunds, or other incentives as defined by government regulations. Check with the Ministry of Lands and Housing for current benefit programs.
When to Use This Housing Levy Calculator
Common scenarios where this calculator helps you understand your housing contributions
1 Verify Payslip Deductions
Check if your employer is deducting the correct Housing Levy amount from your salary. Enter your gross pay and compare the calculated 1.5% employee contribution with what appears on your payslip. Discrepancies may indicate payroll errors.
2 Understand Total Employer Cost
See the full cost of employing you, including the employer's 1.5% Housing Levy contribution. This helps in salary negotiations and understanding your total compensation package beyond just your gross salary.
3 Calculate Annual Contributions
Estimate your total annual Housing Levy contributions to understand how much you're contributing to the Affordable Housing Fund over the year. This helps with financial planning and tracking potential benefits eligibility.
4 Compare Job Offers
When evaluating job offers with different salary structures, calculate the Housing Levy for each to understand the true take-home impact. Since there's no cap, higher salaries mean proportionally higher Housing Levy deductions.
5 Budget for Net Pay
Factor in the 1.5% Housing Levy deduction when calculating your expected net pay. Combined with PAYE, NSSF, and SHIF, statutory deductions can significantly reduce your gross salary, so accurate budgeting is essential.
6 Employer Compliance Check
Verify that your employer is remitting both employee and employer Housing Levy contributions. The calculator shows what should be paid, helping ensure compliance with Kenya's affordable housing regulations.
Official Data Sources
Our Housing Levy calculations are based on official government regulations and Kenya housing legislation
- Ministry of Lands and Housing — Official Housing Levy rates and affordable housing program information. The Ministry manages the Affordable Housing Fund and contributor benefits.
- Kenya Revenue Authority (KRA) — Collection and remittance procedures for Housing Levy contributions. KRA oversees statutory deductions compliance.
- Finance Act, 2023 — The legal framework establishing the Affordable Housing Levy. This Act defines the 1.5% employee and 1.5% employer contribution rates effective from 2024.
- 2026 Housing Levy Regulations — Current rate: 1.5% employee + 1.5% employer = 3% total of gross pay. No upper cap. Contributions fund affordable housing initiatives with potential benefits for contributors.
- Last Verified: . We verify our rates against official Housing Development Fund publications and government gazettes. Current rates are valid for 2026.
Real-World Housing Levy Examples (2026)
See how Housing Levy contributions work across different salary levels with actual 2026 rates
Entry-Level (KES 50,000/month)
Gross Pay: KES —
Employee Levy: KES —
Employer Levy: KES —
Total Levy: KES —
Mid-Level (KES 120,000/month)
Gross Pay: KES —
Employee Levy: KES —
Employer Levy: KES —
Total Levy: KES —
Senior Manager (KES 250,000/month)
Gross Pay: KES —
Employee Levy: KES —
Employer Levy: KES —
Total Levy: KES —
Annual Salary (KES 1,800,000/year)
Monthly Equivalent: KES —
Monthly Employee: KES —
Annual Employee: KES —
Annual Total: KES —
Housing Levy — FAQs
Common questions about the Housing Levy in Kenya.
The housing levy is 1.5% of gross salary for both employee and employer, totaling 3% (combined).
Yes. The housing levy is mandatory for all employees in Kenya as of 2024.
No. The housing levy is separate from health insurance (NHIF/SHIF). You pay both.
Housing levy contributions may be eligible for benefits or refunds only as provided by government affordable housing programs. Check current regulations for details.
No. Unlike NSSF, there is no upper limit. The 1.5% applies to your entire gross salary.
The Affordable Housing Levy became effective in 2024 following the Finance Act amendments.
The housing levy is calculated as 1.5% of your gross pensionable pay (basic salary plus taxable allowances). Non-taxable allowances are excluded from the calculation base. Both employee and employer contribute 1.5% each.
Yes, taxable allowances such as house allowance and medical allowance are included in the housing levy calculation base. However, non-taxable allowances are excluded. The levy is computed on gross pensionable pay.
The Affordable Housing Fund is used to finance the government's affordable housing initiative. Contributions help build affordable homes for Kenyans. Contributors may be eligible for benefits such as priority access to housing units or refunds according to government regulations.
Yes. Employers are required to contribute a matching 1.5% of your gross pensionable pay to the Housing Levy. This is in addition to the 1.5% deducted from your salary. Combined, the total contribution is 3% of gross pay (1.5% employee + 1.5% employer).
Contributors to the Housing Levy may be eligible for benefits such as priority access to affordable housing units, refunds, or other incentives. To claim benefits, register with the Ministry of Lands and Housing or the relevant government agency managing the Affordable Housing Fund. Check current regulations for specific eligibility criteria and application procedures.
Yes, employee Housing Levy contributions are tax-deductible before PAYE calculation. This means the 1.5% deducted from your salary reduces your taxable income, lowering your PAYE tax liability. For example, if you earn KES 100,000 and contribute KES 1,500 to Housing Levy, your taxable income becomes KES 98,500.
Employers must remit both employee and employer Housing Levy contributions to KRA by the 9th of the following month, along with other statutory deductions like PAYE, NSSF, and SHIF. Late remittance may result in penalties and interest charges.
The Housing Levy primarily applies to employed individuals with formal employment contracts. Self-employed individuals and informal sector workers may have different contribution requirements or voluntary participation options. Check with KRA or the Ministry of Lands for current regulations on self-employment contributions.
If you work multiple jobs, each employer deducts 1.5% Housing Levy based on what they pay you. Your total Housing Levy contributions from all employers are combined. Unlike NSSF which has caps, Housing Levy has no upper limit, so you'll pay 1.5% on your combined income from all sources.
Employers are legally required to remit both employee and employer Housing Levy contributions. Failure to do so is a violation of the Finance Act and can result in penalties, interest charges, and legal action. You can verify your contributions by checking with KRA or requesting payslip confirmation from your employer.
No, the Housing Levy is mandatory for all employed individuals in Kenya as of 2024. You cannot opt out. The levy is a statutory deduction similar to PAYE, NSSF, and SHIF, and employers are required by law to deduct and remit it.
Housing Levy and SHIF are separate statutory deductions. SHIF (2.75%) funds health insurance, while Housing Levy (1.5% employee + 1.5% employer) funds affordable housing initiatives. You pay both deductions - they don't replace each other. Housing Levy is specifically for housing programs, not healthcare.
Contributing to the Housing Levy doesn't automatically entitle you to a house. However, contributors may receive priority access to affordable housing units built under the government's affordable housing program, potential refunds, or other benefits as defined by regulations. Eligibility and allocation processes are managed by the Ministry of Lands and Housing.
You can verify your Housing Levy contributions by checking your monthly payslip, accessing your KRA iTax portal to view statutory deductions, or requesting a statement from your employer. The 1.5% employee deduction should appear on your payslip alongside PAYE, NSSF, and SHIF. Contact KRA or the Ministry of Lands if you suspect non-remittance.