Need a reliable housing levy calculator? Get your exact monthly deduction amount in 30 seconds with our free Kenya calculator.
Free Housing Levy Calculator Tool #
Our calculator shows you exactly what gets deducted from your salary each month. This tool works for all Kenyan salaries and gives you instant results.
How to use this tool:
Step 1: Enter your gross monthly salary
Step 2: Click “Calculate” to get your deduction amount
Step 3: See your exact monthly contribution
Step 4: View your annual contribution total
This calculator shows you:
- Your monthly contribution (1.5% of gross salary)
- Your employer’s matching contribution
- Combined monthly total going to the fund
- Your yearly contribution amount
- Your net salary after deduction
What is Kenya’s Housing Levy? #
The levy is 1.5% of your gross salary, deducted monthly from your paycheck. Both you and your employer contribute this amount to fund affordable housing projects across Kenya.
Your employer deducts your 1.5% contribution directly from your salary through payroll. They also add their matching 1.5% contribution on top of yours.
Complete Deduction Breakdown #
KSh 30,000 Monthly Salary – Calculator Results #
Using our tool:
- Your monthly contribution: KSh 30,000 × 1.5% = KSh 450
- Employer monthly contribution: KSh 30,000 × 1.5% = KSh 450
- Total monthly to fund: KSh 900
- Your annual contribution: KSh 5,400
- Total annual to fund: KSh 10,800
- Your net salary after deduction: KSh 29,550
KSh 50,000 Monthly Salary – Calculator Results #
Using our tool:
- Your monthly contribution: KSh 50,000 × 1.5% = KSh 750
- Employer monthly contribution: KSh 50,000 × 1.5% = KSh 750
- Total monthly to fund: KSh 1,500
- Your annual contribution: KSh 9,000
- Total annual to fund: KSh 18,000
- Your net salary after deduction: KSh 49,250
KSh 100,000 Monthly Salary – Calculator Results #
Using our tool:
- Your monthly contribution: KSh 100,000 × 1.5% = KSh 1,500
- Employer monthly contribution: KSh 100,000 × 1.5% = KSh 1,500
- Total monthly to fund: KSh 3,000
- Your annual contribution: KSh 18,000
- Total annual to fund: KSh 36,000
- Your net salary after deduction: KSh 98,500
KSh 200,000 Monthly Salary – Calculator Results #
Using our tool:
- Your monthly contribution: KSh 200,000 × 1.5% = KSh 3,000
- Employer monthly contribution: KSh 200,000 × 1.5% = KSh 3,000
- Total monthly to fund: KSh 6,000
- Your annual contribution: KSh 36,000
- Total annual to fund: KSh 72,000
- Your net salary after deduction: KSh 197,000
Why Use Our Calculation Tool? #
Budget planning: Plan your monthly budget accurately with exact deduction amounts
Job comparison: Compare take-home pay between different job offers
Financial planning: Know your exact contributions for better financial decisions
Payslip clarity: Understand every deduction on your monthly payslip
Housing Levy Key Facts #
Who must pay? All income earners in Kenya contribute to the levy
Rate: 1.5% of gross salary for both employee and employer
Tax relief: 15% relief on your annual contributions (up to KSh 9,000 monthly cap)
Collection: KRA collects payments by 9th working day after month-end
Purpose: Funds Kenya’s affordable housing development programs
What the Housing Levy Funds are Used For #
Your monthly contributions go toward Kenya’s affordable housing program. KRA has collected over KSh 73.2 billion from deductions since implementation, making it one of the government’s largest revenue streams.
Where your money goes:
- Affordable housing projects across Kenya
- Infrastructure development for housing estates
- Down payment assistance programs
- Mortgage interest subsidies for qualifying buyers
Benefits you may qualify for:
- Affordable housing units through government programs
- Preferential mortgage rates
- Down payment assistance if you meet income requirements
- Tax relief of 15% on your annual contributions
The government aims to deliver 250,000 affordable housing units annually using these funds.
Common Questions About Housing Levy Deductions #
“Can I opt out?” No, all persons who receive income in Kenya are required to remit 1.5% of their gross income to KRA. It’s mandatory for all income earners.
“Do I get this money back?” The fund supports affordable housing development. You may qualify for housing programs funded by these contributions, plus you get 15% tax relief on your annual contributions.
“What if I already own a house?” You still pay the deduction regardless of your housing status. The program aims to increase overall housing supply in Kenya.
“When do employers pay this to KRA?” The due date for remittance is the 9th working day after the end of the month in which the gross salary was paid.
“Is there a penalty for late payment?” Yes, employers face a 3% penalty per month on unpaid amounts. This is recoverable as a civil debt.
Other Kenyan Tax Calculators You Need #
Beyond calculating your housing contribution, you’ll need these calculations:
NSSF Calculator: 2.75% of gross salary for retirement savings
SHIF Calculator: 2.75% of gross salary for health insurance (minimum KSh 300)
PAYE Calculator: Progressive tax rates from 10% to 35%
Use our tool alongside these other tax calculators for complete payroll planning. This tool gives instant results for any Kenyan salary.
Bookmark our calculator for quick calculations whenever you need them.
Share this housing levy calculator with colleagues who need to understand their payroll deductions. Our calculator works on mobile and desktop devices.
Government Sources:
This tool provides estimates. Consult your HR or tax advisor for specific situations. Information updated September 2025.