Housing Levy Calculator Kenya 2026
The Affordable Housing Levy, commonly called the Housing Levy, is one of the statutory deductions that affects salary and take-home pay in Kenya.
This guide explains how to calculate the Housing Levy in Kenya in 2026, using the 1.5% gross salary rule, with simple examples and a quick calculator.
What is the Affordable Housing Levy in Kenya?
The Affordable Housing Levy is a statutory contribution collected by the Kenya Revenue Authority. For employees, the deduction is based on gross monthly salary. The employer also contributes a matching amount.
In salary calculations, the employee portion is the amount that reduces take-home pay. The employer portion is paid by the employer and is not deducted from the employee's net salary.
Housing Levy Rate in Kenya 2026
The Housing Levy is calculated using this rule:
Employee Housing Levy = 1.5% of gross monthly salary
Employer Housing Levy = 1.5% of the employee's gross monthly salary.
| Item | Rate / Rule |
|---|---|
| Employee Housing Levy | 1.5% of gross monthly salary |
| Employer Housing Levy | 1.5% of employee's gross monthly salary |
| Total combined contribution | 3% of gross monthly salary |
| Collected by | Kenya Revenue Authority |
| Remittance deadline | 9th working day after the end of the month |
Free Housing Levy Calculator Kenya 2026
Use this simple calculator to estimate the employee Housing Levy and employer contribution from gross monthly salary.
How to Calculate Housing Levy Step by Step
Step 1: Start with gross monthly salary
Gross salary is the salary before deductions. The employee Housing Levy is calculated from gross monthly salary, not net salary.
Step 2: Multiply gross salary by 1.5%
Convert 1.5% into decimal form:
Then multiply:
Step 3: Estimate employer contribution separately
The employer also contributes 1.5% of the employee's gross monthly salary. However, this employer contribution does not reduce the employee's net pay directly.
Example 1: Housing Levy for Ksh 20,000 Gross Salary
| Gross salary | Ksh 20,000 |
|---|---|
| Employee calculation | 20,000 × 1.5% |
| Employee Housing Levy | Ksh 300 |
| Employer contribution | Ksh 300 |
| Combined contribution | Ksh 600 |
Example 2: Housing Levy for Ksh 50,000 Gross Salary
| Gross salary | Ksh 50,000 |
|---|---|
| Employee calculation | 50,000 × 1.5% |
| Employee Housing Levy | Ksh 750 |
| Employer contribution | Ksh 750 |
| Combined contribution | Ksh 1,500 |
Example 3: Housing Levy for Ksh 100,000 Gross Salary
| Gross salary | Ksh 100,000 |
|---|---|
| Employee calculation | 100,000 × 1.5% |
| Employee Housing Levy | Ksh 1,500 |
| Employer contribution | Ksh 1,500 |
| Combined contribution | Ksh 3,000 |
Does Housing Levy Reduce Net Salary?
Yes. The employee Housing Levy reduces net salary because it is deducted from the employee's gross pay. The employer contribution is separate and does not reduce the employee's take-home pay directly.
When estimating take-home pay, employees should include:
- PAYE
- SHIF
- NSSF employee contribution
- Affordable Housing Levy
- SACCO deductions
- Loan deductions
- Union deductions
- Other payroll deductions
Calculate Full Net Salary in Kenya
Housing Levy is only one deduction. Use our free Kenya Net Salary Calculator to estimate PAYE, SHIF, NSSF, Housing Levy and take-home pay.
Open Kenya Net Salary CalculatorEmployee Housing Levy vs Employer Housing Levy
| Contribution Type | Who Pays? | Reduces Employee Net Pay? |
|---|---|---|
| Employee Housing Levy | Employee, through salary deduction | Yes |
| Employer Housing Levy | Employer | No direct deduction from employee net pay |
Common Mistakes When Calculating Housing Levy
1. Using net salary instead of gross salary
Housing Levy is calculated from gross monthly salary, not from the final net pay.
2. Forgetting the employer portion
The employer also contributes 1.5%. However, for take-home pay, the employee portion is the part deducted from salary.
3. Treating Housing Levy as PAYE
Housing Levy is different from PAYE. PAYE is income tax, while Housing Levy is a separate statutory contribution.
4. Ignoring other deductions
Housing Levy alone does not show full net salary. Employees should also consider PAYE, SHIF, NSSF and personal deductions.
Download the Free Kenya Salary Calculator Excel 2026
Want to calculate salary offline? Download the Excel version and estimate PAYE, SHIF, NSSF, Housing Levy and net salary from your computer.
Download Excel Calculator Use Online CalculatorThis tool gives estimates only. Always confirm final deductions with your employer, payroll office, KRA, SHIF/SHA, NSSF or official platforms.
Frequently Asked Questions
How is Housing Levy calculated in Kenya?
Employee Housing Levy is calculated at 1.5% of gross monthly salary. The employer also contributes 1.5% of the employee's gross monthly salary.
Is Housing Levy calculated from gross salary or net salary?
Housing Levy is calculated from gross monthly salary, not net salary.
Does the employer also pay Housing Levy?
Yes. The employer contributes 1.5% of the employee's gross monthly salary.
Does Housing Levy reduce take-home pay?
Yes. The employee portion reduces take-home pay because it is deducted from salary.
When is Housing Levy remitted?
KRA states that the Affordable Housing Levy is due by the 9th working day after the end of the month in which the gross salary was due or income was received or accrued.
Official References
For official confirmation, refer to KRA and official government platforms.