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
Use our PAYE Calculator to see how housing levy combines with other deductions to affect your total take-home pay.
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.
Learn more about the Affordable Housing Act, 2024 from KRA.
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
Check our Net Pay Calculator to see your complete take-home after all statutory deductions including housing levy.
Why Use Our Calculation Tool? #
Budget planning #
Plan your monthly budget accurately with exact deduction amounts. Use our Rent Affordability Calculator to ensure housing costs fit within your actual net income.
Job comparison #
Compare take-home pay between different job offers. Factor in housing levy alongside PAYE, NSSF, and SHIF deductions.
Financial planning #
Know your exact contributions for better financial decisions. See our Compound Interest Calculator to project how housing levy savings could grow if invested differently.
Payslip clarity #
Understand every deduction on your monthly payslip. Our PAYE Calculator breaks down all statutory deductions comprehensively.
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
Visit the Kenya Revenue Authority Housing Levy page for official information.
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.
If you’re considering land investment instead, check our 1/4 Acre Land Guide for alternative property investment strategies.
Understanding Housing Levy Tax Relief #
One benefit many employees miss: 15% tax relief on housing levy contributions.
How Tax Relief Works: #
Example with KSh 100,000 salary:
- Monthly housing levy: KSh 1,500
- Annual contribution: KSh 18,000
- 15% tax relief: KSh 2,700 annually
- Monthly tax savings: KSh 225
This tax relief reduces your PAYE burden. Use our PAYE Calculator to see your exact tax savings from housing levy contributions.
Maximum Relief Cap: #
The relief is capped at KSh 9,000 monthly contribution:
- Maximum annual contribution for relief: KSh 108,000
- Maximum annual relief: KSh 16,200
- This applies to salaries of KSh 600,000+ monthly
Housing Levy and Your Complete Salary Breakdown #
Understanding how housing levy fits with other deductions:
Total Statutory Deductions (KSh 100,000 salary): #
- NSSF: KSh 4,320 (6% on KSh 72,000 max) – See NSSF Calculator
- SHIF: KSh 2,750 (2.75% of gross) – Check SHIF Calculator
- Housing Levy: KSh 1,500 (1.5% of gross)
- Total before PAYE: KSh 8,570
- Taxable income: KSh 91,430
- PAYE tax: ~KSh 19,812
- Final net pay: ~KSh 71,618
Use our Net Pay Calculator for your complete breakdown.
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. Visit KRA’s iTax portal for payment tracking.
“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.
“Can I use housing levy to buy land?” #
While levy funds don’t directly buy land, they may support infrastructure for housing developments. For land purchases, see our 1/4 Acre Land Guide for financing options.
How to Qualify for Affordable Housing Units #
Contributing to the housing levy may qualify you for government housing programs:
Eligibility Criteria: #
- Must be a Kenyan citizen
- Must be contributing to housing levy
- Income should fall within program limits (typically KSh 150,000 or less monthly)
- First-time homebuyer preference in most programs
- Meet minimum contribution period requirements
Application Process: #
- Verify your housing levy contributions are up to date
- Register on the government housing portal
- Submit application during open periods
- Provide income verification and ID documents
- Await allocation based on eligibility scoring
Visit the State Department for Housing for application details.
Housing Levy vs Personal Housing Savings #
Should you rely on housing levy or save separately for housing?
Housing Levy Advantages: #
- Automatic deductions (forced savings)
- Employer matching doubles your contribution
- 15% tax relief reduces overall cost
- May qualify for government housing programs
Personal Savings Advantages: #
- Full control over timing and use
- Can use for any property type
- No government program requirements
- Immediate access when needed
Best approach: Combine both strategies. Use housing levy for long-term benefits while building personal savings in money market funds earning 16%+ for down payments.
Special Cases: Housing Levy Scenarios #
Self-Employed Individuals #
Self-employed Kenyans also contribute housing levy:
- Calculate 1.5% of your gross monthly income
- Remit directly to KRA via iTax
- You pay both employee and employer portions (3% total)
- Claim tax relief on annual returns
Multiple Employers #
Working multiple jobs?
- Each employer deducts 1.5% independently
- All contributions count toward your total
- May exceed monthly cap for tax relief
- Claim excess relief on annual tax returns
Commission-Based Income #
Variable income workers:
- Levy calculated on actual monthly gross earnings
- Contributions fluctuate with income
- Lower income months = lower contributions
- Plan budget around minimum expected net pay
First Job After School #
Starting your career? Understand:
- Housing levy starts immediately with employment
- Even entry-level salaries contribute
- Builds long-term housing qualification
- See our How to Apply for HELB Loan if still repaying student loans
Maximizing Your Housing Levy Benefits #
Track Your Contributions #
- Check monthly payslips for correct deductions
- Request P9 form annually from employer
- Verify contributions on KRA iTax portal
- Keep records for housing program applications
Claim Full Tax Relief #
- Ensure housing levy shows on your tax returns
- Verify 15% relief is applied correctly
- Don’t miss relief due to paperwork errors
- Consult ICPAK-registered accountants if needed
Plan for Housing Opportunities #
- Monitor government housing announcements
- Register interest for upcoming projects
- Maintain eligibility by keeping contributions current
- Budget additional savings for down payments
Housing Levy and Job Changes #
What happens when you change employment?
Continuity of Contributions: #
- Housing levy contributions follow you
- New employer starts deductions immediately
- No waiting period or re-enrollment
- All past contributions count toward qualification
Career Breaks: #
- Contributions pause when unemployed
- Resume automatically with new employment
- Past contributions remain on record
- May affect total contribution period for program eligibility
Use our Severance Pay Calculator to plan finances during job transitions while maintaining housing savings momentum.
Future of Housing Levy: What to Expect #
Program Evolution: #
The housing levy program continues developing:
- Expansion of affordable housing projects nationwide
- Introduction of more financing options for contributors
- Potential increases in tax relief percentages
- Digital tracking systems for contribution verification
Legislative Changes: #
Stay updated through:
- Kenya Revenue Authority announcements
- Parliament of Kenya legislative updates
- State Department for Housing policy changes
Financial Planning Tools for Complete Salary Management #
Essential Calculators: #
- PAYE Calculator – Calculate income tax deductions
- NSSF Calculator – See pension contributions (6% on KSh 72,000 max)
- SHIF Calculator – Calculate health insurance (2.75% of gross)
- Net Pay Calculator – See complete take-home salary
- Rent Affordability Calculator – Ensure housing fits budget
Savings and Investment Tools: #
- Compound Interest Calculator – Project long-term savings growth
- Best Money Market Funds Kenya – Find funds earning 16%+ for additional savings
- 1/4 Acre Land Guide – Alternative property investment strategies
Daily Financial Management: #
- How to Reduce Transaction Costs – Save on M-Pesa fees
- How to Send Money to Equity Bank – Automate savings transfers
- Lipa Mdogo Mdogo Calculator – Smart phone financing decisions
Other Kenyan Tax Calculators You Need #
Beyond calculating your housing contribution, you’ll need these calculations:
NSSF Calculator: 6% of gross salary for retirement savings (max KSh 4,320 monthly) – Check our NSSF Calculator
SHIF Calculator: 2.75% of gross salary for health insurance (minimum KSh 300) – Use our SHIF Calculator
PAYE Calculator: Progressive tax rates from 10% to 35% – See our PAYE Calculator
Use our tool alongside these other tax calculators for complete payroll planning. This tool gives instant results for any Kenyan salary.
Taking Action: Use Your Housing Levy Wisely #
Immediate Steps: #
- Calculate your deductions using this tool
- Verify payslip accuracy matches 1.5% of gross salary
- Track annual contributions for tax relief claims
- Budget realistically using actual net pay figures
Long-Term Planning: #
- Monitor government housing programs for opportunities
- Build supplementary savings for larger down payments
- Research affordable housing projects in your preferred areas
- Maintain contribution records for program applications
Financial Optimization: #
- Claim full tax relief on annual returns
- Use net pay calculators before job offers
- Plan career moves considering total compensation
- Maximize savings through efficient money management
Additional Resources #
Government Sources: #
- Kenya Revenue Authority – Affordable Housing Levy – Official levy information
- The Affordable Housing Act, 2024 – Complete legislation
- State Department for Housing – Housing programs and applications
- KRA iTax Portal – Tax filing and verification
Financial Planning: #
- Central Bank of Kenya – Financial consumer protection
- Retirement Benefits Authority – Long-term financial planning
- Institute of Certified Public Accountants – Professional tax advice
Housing Information: #
- Architectural Association of Kenya – Housing design standards
- National Construction Authority – Construction industry regulation
- National Housing Corporation – Government housing developments
Final Thoughts #
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.
Disclaimer: This tool provides estimates based on current Housing Levy regulations. Consult your HR department or tax advisor for specific situations. Information updated January 2026
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