Understanding the Housing Levy
The Affordable Housing Levy is charged at 1.5 percent from the employee and 1.5 percent from the employer, a combined 3 percent, calculated on your gross salary. Its legal basis is the Affordable Housing Act 2024, which re-enacted the levy after the earlier version under the Finance Act 2023 was struck down by the courts as unconstitutional. The Kenya Revenue Authority (KRA) collects the levy on behalf of the Affordable Housing Fund.
For payroll purposes the levy is a deduction allowed against your taxable income, so it reduces the pay on which your PAYE is worked out. It sits alongside your other statutory items such as PAYE, NSSF and SHIF. Because rules and rates can change, confirm the current treatment on the official KRA channels rather than relying on older payroll notes.
Your job as an employee is to confirm two things: that the correct amount is being deducted, and that the amount is actually reaching KRA. The rest of this guide walks through both checks using documents you can request and records you can access yourself.
What is the Housing Levy?
The Affordable Housing Levy requires both you and your employer to pay 1.5 percent each of your gross monthly salary, a combined 3 percent that the employer remits to KRA. For a gross salary of KSh 50,000, that is KSh 750 from you and KSh 750 from your employer. The levy applies to gross pay, so review the exact definition of levyable earnings on the KRA channels if your pay includes several allowances.
To check compliance, review your payslip for the 1.5 percent employee deduction and ask your employer for proof that the combined amount has been paid to KRA. You can also work the expected figure yourself; the transfer calculator and a simple spreadsheet both help you confirm 1.5 percent of your gross pay.
Employers remit the levy to KRA through the official payment channels. Keep any payment references your employer shares, because these form the audit trail you will rely on if you ever need to query a missing month.
Your Rights as an Employee
Under the Employment Act 2007 you are entitled to a payslip that itemises your deductions, so you can see the housing levy line separately from PAYE, NSSF and SHIF. You can ask your employer for proof that statutory deductions have been remitted, and you can raise a complaint where they have not been.
Your practical options include the following.
- Ask HR or finance for itemised payslips and confirmation that the levy has been remitted to KRA.
- Review your own KRA records to compare what was deducted against what was remitted.
- Raise the matter with KRA through its official helpline and contact channels if remittances are missing.
- Seek advice from the Ministry of Labour or the Employment and Labour Relations Court where an employer refuses to comply.
Keep copies of everything. A clear record of payslips and correspondence is what makes any later query or complaint straightforward.
Gathering Essential Documents
Collect several months of payslips, your annual P9A from your employer, and your own KRA records. Together these let you trace the 1.5 percent deduction from your pay through to the remittance. Employers issue the P9A so that you can file your annual return, so request it if you have not received it.
Start with your monthly payslips, which should show the housing levy as its own line, separate from NSSF and PAYE. Then add your KRA records so you can confirm the statutory payments tied to your PIN.
Cross-check these against your bank statements for the net pay you actually received. If something does not reconcile, note it and raise it with HR or finance, and with KRA if needed.
Payslips and Salary Records
Ask for detailed payslips that show a clear housing levy line with the exact 1.5 percent employee amount, for example KSh 750 on a KSh 50,000 gross salary. Keeping the levy separate from PAYE and NSSF makes verification much easier.
Use this checklist when you review a payslip.
- Confirm the housing levy employee line appears separately from NSSF and PAYE.
- Check the amount equals 1.5 percent of your gross pay.
- Request copies of several months of payslips from HR for a complete record.
- Cross-check the net pay against your bank statement.
If the line is missing, ask HR or your accountant which earnings were used for the calculation. Spotting a problem early is far easier than unwinding months of missing remittances later.
Annual Tax Returns
Your P9A summarises the year's pay, PAYE and statutory deductions, and your employer should issue it ahead of the annual return season. Use it to reconcile the housing levy deducted across the year against the totals on your monthly payslips.
The table below shows the items to confirm on the levy.
| Item | What to check |
|---|---|
| Housing Levy (employee) | 1.5% of gross salary |
| Housing Levy (employer) | Matching 1.5% contribution |
| Combined remittance | Paid to KRA each month |
If the annual totals do not match your payslips, raise the difference with finance and, if it is not resolved, with KRA. Retain copies in case you need them for a later query.
Verifying Levy Deductions
Verify that the payslip deduction equals 1.5 percent of your gross pay. A simple spreadsheet formula such as =Gross*0.015 does this in one step. Work from gross pay, not net pay, so you are comparing like with like.
Common errors include using net pay instead of gross, leaving out an allowance that should be included, or rounding inconsistently. Reviewing each month as the payslip arrives keeps small discrepancies from building up.
Keep a running record of your checks. If you find a difference, raise it with HR or finance, and keep the correspondence in case you escalate to KRA.
Checking Monthly Deductions
Step 1: find the housing levy line and confirm it equals gross salary multiplied by 0.015. A spreadsheet cell with =B2*0.015 against your gross pay gives you the expected figure to compare.
Step 2: track several months side by side so you can spot a pattern, such as a month where the deduction appears on your payslip but the figure looks wrong.
- Enter each month's gross salary and the expected levy.
- Total your annual employee contribution.
- Flag any month where the payslip figure does not match.
- Keep payslip copies alongside your notes as a record.
This makes any conversation with your employer or KRA concrete, because you can point to the exact month and figure in question.
Calculating Your Share (1.5%)
Use the formula housing levy equals gross monthly salary multiplied by 0.015. For example, KSh 80,000 multiplied by 0.015 is KSh 1,200. The same 1.5 percent applies to both the employee and the employer share.
The table below shows the employee share at several salary levels.
| Monthly Gross Salary (KSh) | Employee Housing Levy (1.5%) | Annual Total (Employee Share) |
|---|---|---|
| 30,000 | 450 | 5,400 |
| 50,000 | 750 | 9,000 |
| 100,000 | 1,500 | 18,000 |
| 200,000 | 3,000 | 36,000 |
Use the annual totals to reconcile against your P9A. If the deducted amount does not match, raise it with your employer first.
Accessing Official Records
Log in to the iTax portal at itax.kra.go.ke with your KRA PIN to view your own tax records. KRA holds the record of what your employer has actually reported and remitted, so it is the place to confirm whether the levy deducted from your pay is reaching the fund.
Where your payslip shows a deduction but the KRA record does not reflect it, that gap is what you want to document. Note the months affected and keep the evidence.
If you find a mismatch, raise it through your employer's HR or finance team and through KRA's official channels. Regular checks make it much easier to catch a problem in the month it happens rather than at year end.
iTax Portal Login
If you do not yet have a KRA PIN, register on iTax under the individual option using your national ID details, then activate the PIN through the confirmation KRA sends you. After that you can log in and review your records.
- Register for a PIN on iTax using your national ID or passport.
- Activate the PIN through the confirmation from KRA.
- Log in with your PIN and password, and reset the password through the portal if needed.
- Review the statutory deduction and payment records linked to your PIN.
If you cannot log in or cannot find the records you expect, contact KRA through its official helpline for help rather than guessing at the figures.
Requesting KRA Statements
From iTax you can generate a statement of your account for the period you want to review. Use it to confirm the statutory payments reported under your PIN and to identify any month that is missing.
Check the key fields against your payslips.
| Field | What to check |
|---|---|
| Reference | Proof that a payment was made |
| Period | The month the payment relates to |
| Amount | Matches the levy on your payslip |
| Employer PIN | Correct employer identification |
If the statement does not match your P9A or your payslips, take it up with finance and, if unresolved, with KRA.
Cross-Checking Employer Remittances
Set up a simple side-by-side comparison: one column for the payslip deduction, one for what your KRA records show, and one for the difference. This makes it easy to see whether the levy taken from your pay has been remitted.
List each month's payslip deduction, then add the matching figure from your KRA records or your P9A. A formula such as =A2-B2 shows the variance. Any non-zero result is a month to query.
If a difference appears, contact HR or finance for an explanation and keep the correspondence. Regular reconciliation is the most reliable way to catch under-remittance early.
Matching KRA vs Payslip Data
Build a table with columns for the month, the payslip amount, the KRA figure and a status. Seeing the two figures together makes any gap obvious.
You can flag differences automatically with a spreadsheet formula. The illustration below shows what a clean month and a problem month look like.
| Month | Payslip Amount | KRA Record | Status |
|---|---|---|---|
| Month 1 | KSh 750 | KSh 0 | Query |
| Month 2 | KSh 750 | KSh 750 | OK |
| Month 3 | KSh 750 | KSh 600 | Query |
| Month 4 | KSh 750 | KSh 750 | OK |
Where a month is marked for query, the deduction left your pay but the matching amount does not appear in your KRA records. That is the trigger to raise the matter.
If the difference is not resolved with your employer, take it to KRA through its official channels with your evidence attached.
Red Flags to Watch For
The clearest warning sign is a deduction on your payslip with no matching record at KRA. If the levy is taken from your pay but does not appear in your KRA records, the money is not reaching the fund. Verify the position promptly so you can act while the trail is fresh.
Check your payslip against your KRA records regularly. A levy line on the payslip with nothing reflected at KRA is the pattern to watch for.
Other signs include a missing employer share, or HR being unable to provide any proof of remittance. Ask for that proof, and keep what you are given.
Common Employer Mistakes
Common problems with the housing levy include the following.
- Deductions appear on payslips but do not show up in your KRA records.
- No proof of remittance is available when you ask for it.
- The employer share is missing, so only the employee 1.5 percent appears.
- The P9A leaves out the housing levy entirely.
- The calculation uses the wrong earnings base.
Late or missing remittance attracts penalties and interest set by KRA. Confirm the current penalty position on the KRA channels rather than relying on an old figure, and demand transparency from your employer on the calculation base.
Report unresolved discrepancies to KRA. Working out 1.5 percent of your gross pay yourself, with a spreadsheet or the transfer calculator, gives you a firm figure to argue from.
Taking Action if Incorrect
Step 1: write to your employer setting out the discrepancy and asking for it to be corrected within a reasonable, clearly stated time. Attach copies of your payslips and the relevant records. A clear written request often resolves the matter quickly.
Step 2: if there is no satisfactory response, contact KRA through its official helpline and channels for guidance on a remittance complaint. Have your PIN and the details of the affected months ready.
Step 3: for persistent cases, seek advice on a claim through the Employment and Labour Relations Court. Document everything so your case rests on a clear record.
Formal Employer Notice
Begin with a formal written notice to HR or finance asking them to confirm that the monthly levy has been remitted to KRA. Attach payslips showing the 1.5 percent deduction and ask for a response within a clearly stated period.
Include your KRA PIN, the employer PIN if you have it, and the months in question. Ask for proof of payment such as a payment reference. This step often resolves the issue without going further.
Keep the notice and any reply, because they form part of your evidence if you escalate.
Raising It With KRA
If the employer notice does not resolve matters, raise the issue with KRA through its official helpline and contact channels. Provide your payslips, your P9A and details of the affected months so KRA can review the employer's remittances.
Note any reference number KRA gives you and keep it with your records. Steer all rate and penalty questions to KRA directly, since these can change.
Ministry of Labour and the Courts
Where the matter concerns your terms of employment rather than only the tax remittance, you can seek advice from the Ministry of Labour, and ultimately from the Employment and Labour Relations Court. Bring your payslips and your record of correspondence.
These routes take longer, so they are best used after you have given your employer and KRA a fair chance to resolve the issue. A complete record of your earlier steps strengthens your position.
Frequently Asked Questions
How do I check whether my employer is remitting the housing levy correctly?
Confirm the 1.5 percent employee deduction on your payslip, then log in to iTax with your PIN and review the statutory payment records under your PIN. Cross-check the deducted amounts against your P9A. Where the payslip shows a deduction that does not appear in your KRA records, raise it with your employer and then with KRA.
What documents do I need to verify housing levy remittances?
You need your monthly payslips showing the 1.5 percent housing levy line, your iTax login, your annual P9A from your employer, and any payment references the employer can provide. Comparing these against each other shows whether what was deducted was actually remitted.
Where can I access my employer's housing levy remittance records?
Use the KRA iTax portal at itax.kra.go.ke to review the statutory payments reported under your PIN, and request proof of payment from your employer's finance team. If you cannot find what you expect, contact KRA through its official channels.
What should I do if my employer is not remitting the housing levy properly?
First discuss it with HR or payroll and ask for it to be corrected in writing. If it is unresolved, raise it with KRA through its official helpline and contact channels, attaching your payslips and records. KRA can review the employer's remittances.
How often should I check my employer's housing levy remittances?
Check each month when your payslip arrives, and review your KRA records periodically through the year. Reconcile against your P9A before you file your annual return so you catch any gap before the year closes.
What is the basis of the housing levy?
The Affordable Housing Levy is charged at 1.5 percent each from the employee and employer of gross pay under the Affordable Housing Act 2024. The earlier Finance Act 2023 version was struck down by the courts, and the 2024 Act re-enacted the levy. Confirm the current rate and treatment on the KRA channels.