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Affordable Housing Levy Kenya Explained (1.5% Employee & Employer)
4 min read · Updated 15 October 2026 · More salary tools
The Affordable Housing Levy (AHL) supports Kenya's affordable housing programme. It is deducted from gross salary, and employers match the employee contribution.
This guide explains the rate, shows worked examples, and outlines how the levy interacts with PAYE.
What is the Affordable Housing Levy rate?
- Employee contribution: 1.5% of gross monthly salary.
- Employer contribution: 1.5% of gross monthly salary.
- Combined contribution to the fund: 3% of gross monthly salary.
Affordable Housing Levy examples
| Gross monthly salary | Employee 1.5% | Employer 1.5% |
|---|---|---|
| KSh 20,000 | KSh 300 | KSh 300 |
| KSh 50,000 | KSh 750 | KSh 750 |
| KSh 100,000 | KSh 1,500 | KSh 1,500 |
| KSh 200,000 | KSh 3,000 | KSh 3,000 |
How it affects your pay and tax
The employee housing levy reduces your take-home pay but is also an allowable deduction, so it lowers your taxable pay and therefore your PAYE. The employer contribution is an extra cost over and above your gross salary and does not affect your net pay.
Quick Answers
Affordable Housing Levy Kenya Explained FAQs
Is the Affordable Housing Levy 1.5% or 3%?
Each side pays 1.5% of gross salary. The employee pays 1.5% and the employer matches it with another 1.5%, making a combined 3% contribution to the fund.
Is the housing levy tax deductible in Kenya?
Yes. The employee housing levy is an allowable deduction that reduces taxable pay before PAYE is calculated.