The government has backdated the compulsory contribution towards the Housing Fund, as proposed in the Finance Act of 2023, to July 1.
This development follows the Court of Appeal’s lifting of the suspension on the interim orders that had previously prevented the enforcement of the contentious Finance Act of 2023.
This progression clears the path for the execution of new taxation measures.
In a public announcement on Wednesday, August 2, the Ministry of Lands, Public Works, Housing, and Urban Development conveyed that the levy is now operational starting from July 1.
“The levy is to be paid by both the employee and the employer at a rate of 1.5 percent of the employee’s total monthly salary by the employee, and 1.5 percent of the employee’s monthly total salary by the employer, in accordance with the Finance Act 2023,” read part of the notice.
Simultaneously, the government has designated the Kenya Revenue Authority (KRA) as the agency responsible for collection.
“KRA will issue a communication advising on the mode of collection,” the notice added.
