Full List of all Kenyans to be Exempted From Housing Levy Deductions

Certain categories of Kenyan citizens will now be exempted from paying the housing levy, as outlined in the Draft Affordable Housing Regulations 2024, in a significant shift from previous proposals.

Initially, it was suggested that every individual would face a 1.5 percent income deduction to contribute to the Affordable Housing Programme. However, the new proposals introduce exemptions for various groups, including Kenyans residing abroad and those receiving specific types of income.

According to the draft, individuals exempted from taxation under international or host country agreements involving Kenya will be spared from the levy. Additionally, income derived from pensions or gratuities upon contract termination will also be exempted.

Furthermore, Kenyans receiving reimbursement for medical, travel, or accommodation expenses related to work will not be subjected to the 1.5 percent deduction. The draft clarifies that insurance compensation will also be excluded from the income eligible for housing levy deductions.

The draft empowers Parliament to introduce legislation to exempt additional individuals from the levy as deemed necessary.

The Affordable Housing Levy deductions began in March following President William Ruto’s approval of the Affordable Housing Bill. President Ruto’s vision is to construct 250,000 housing units annually under this program, aiming to address the country’s housing crisis while generating employment opportunities for Kenyans.