The Kenya Kwanza administration retroactively set July 1 as the deadline for making the required contribution to the Housing Fund outlined in the Finance Act of 2023.
This follows the Court of Appeal's decision to end the temporary stay of the conservatory orders that prevented the controversial Finance Act of 2023 from going into effect.
This opens the door for the adoption of new tax regulations.
The levy will now take effect on July 1, 2023, according to a public notification sent by the Ministry of Lands, Public Works, Housing, and Urban Development on Wednesday.
“The levy is payable by the employee and employer at a rate of one point five per centum (1.5 per cent) of the employee's gross monthly salary by the employee, and one point five per centum of the employee's monthly gross salary by the employer, as outlined in the Finance Act 2023,” read the notice.
The Kenya Revenue Authority (KRA) has been designated by the government as the collecting agent at the same time.
“KRA will issue a communication advising on the mode of collection,” the notice added.
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