Friday, March 22, 2024 - President William Ruto will receive a whopping Ksh10 billion monthly from the Housing Levy after he assented to the Affordable Housing Bill.
This was revealed by Housing Principal Secretary Charles Hinga.
During an interview, Hinga remarked that this was Ksh4 billion more than the previous deductions declared unlawful by the courts in January.
“Before the court stopped it, we had peaked at Ksh5 billion a month. Then there was a government contribution of about Ksh1 billion making it between Ksh6 billion to Ksh6.5 billion a month,” Hinga explained.
“Going forward, we are estimating we will be collecting anywhere between Ksh9 billion and Ksh10 billion a month.”
Hinga explained that the Ksh4 billion increase was due to the inclusion of non-salaried Kenyans in payment of the levy.
While salaried Kenyans will have 1.5 per cent of their salary go towards the Housing Levy, Kenyans who earn through partnership and consultancy fees will have a 1.5 per cent deduction imposed on their gross income.
Kenyans working in the informal sector will on the other hand have the Housing Levy deducted from the already existing Turnover Tax (TOT).
The PS explained that for all categories of Kenyans, the deductions were starting with immediate effect and must be captured in the March 2024, earnings.
For employers, submission of their deductions must be availed to the Kenya Revenue Authority by April 9.
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