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State says employers must continue deduction of Housing Levy

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Lands Cabinet Secretary Alice Wahome

Salaried Kenyans will continue paying for the Affordable Housing Levy (AHL).

This comes after a three-judge bench granted a 45-day stay order on the Housing Levy after the courts declared it unconstitutional on Tuesday.

The Ministry Of Lands, Public Works, Housing And Urban Development in a statement early Wednesday said that all employers must continue deducting the Affordable Housing Levy (AHL) from the employee’s gross salary and continue to remit to the Kenya Revenue Authority (KRA) together with the Employer’s contribution.

Kenyans formally employed started being deducted the Housing Levy from July with KRA granted the mandate to collect the funds.

“Please note that the employer’s contribution to the Affordable Housing levy is an allowable deduction under Section 15 of the Income Tax Act,”Cabinet Secretary for Ministry Of Lands, Public Works, Housing And Urban Development Alice Wahome said.

CS Wahome cautioned employers who fail to comply with the law saying that they will be liable to payment of a penalty equivalent to two per cent of the unpaid funds for every month if the same remains unpaid.

She committed to ensure that employers are optimally supported to continuously engage and collaborate with stakeholders to enhance compliance with the Affordable Housing Levy deductions.