Payroll
The Affordable Housing Levy: A Simple Employer's Guide
Goldstar Payroll Desk 8 January 2026 4 min read
The 1.5% Affordable Housing Levy applies to both employer and employee. Here is how to compute and remit it correctly.
The Affordable Housing Levy requires employers to deduct 1.5% of an employee's gross monthly salary, and to match it with a further 1.5% as the employer's contribution.
The basics The levy is computed on gross pay and must be remitted to the KRA by the statutory deadline each month. Both the employee deduction and the employer contribution are payable.
Common mistakes Businesses often miscalculate the base, forget the employer's matching portion, or miss the remittance deadline. Each of these carries penalties and interest.
Stay compliant We build the levy into your payroll run automatically, so the right amount is deducted, matched and remitted without you having to think about it.
Written by Goldstar Payroll Desk
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