Affordable Housing Levy Calculator Kenya 2026
Calculate the Affordable Housing Levy on a salary — 1.5% deducted from the employee plus 1.5% paid by the employer — alongside PAYE, NSSF, SHIF and net pay.
Rates effective 01/02/2026
Results
How the Housing Levy is calculated
- The employee's share is 1.5% of gross monthly pay, deducted through payroll.
- The employer adds an equal 1.5% of gross pay from its own funds.
- There is no minimum and no cap.
- The employee's share is deducted from pay before PAYE is charged, so it lowers the tax you pay.
Housing Levy rates (effective 01/02/2026)
| Who pays | Rate | Basis |
|---|---|---|
| Employee | 1.5% | Gross monthly pay |
| Employer | 1.5% | Gross monthly pay |
| Total remitted | 3% | Gross monthly pay |
Worked examples
| Gross monthly pay | Employee | Employer | Total remitted |
|---|---|---|---|
| KES 25,000.00 | KES 375.00 | KES 375.00 | KES 750.00 |
| KES 50,000.00 | KES 750.00 | KES 750.00 | KES 1,500.00 |
| KES 100,000.00 | KES 1,500.00 | KES 1,500.00 | KES 3,000.00 |
| KES 250,000.00 | KES 3,750.00 | KES 3,750.00 | KES 7,500.00 |
On KES 50,000.00, KES 750.00comes off the employee's pay and the employer pays another KES 750.00, so KES 1,500.00 is remitted for that employee each month.
Frequently asked questions
Is the Housing Levy charged on gross or basic pay?
On gross pay. This calculator assumes basic pay equals gross pay with no other allowances, so the two are the same here.
Does the employer's share come out of my salary?
No. The employer's 1.5% is an extra cost to the employer; only your 1.5% is deducted from your pay.
Is the Housing Levy tax-deductible?
Yes. Since the Tax Laws (Amendment) Act 2024, the employee's Housing Levy is deducted from pay before PAYE is charged.
Is there a maximum Housing Levy?
No. It is a flat percentage of gross pay with no cap, on both the employee and employer side.
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