On Tuesday, 19th March 2024, Kenya’s President signed into law The Affordable Housing Act 2024, amending the legislation which originally implemented the Affordable Housing Levy in 2023 in the Finance Act, 2023.
The Act requires employees to contribute 1.5% of their gross monthly salary, matched by their employers, into the Affordable Housing Fund.
The Act requires employers to remit this to the KRA (the collector on behalf of the Affordable Housing Fund) by the 9th of the following month.
The KRA published a notice to inform employers that with effect from 19 March 2024, employers must remit this using tab M of the iTax file.
Click here to view the notice.
Impact of the Kenya The Affordable Housing Act 2024 Effective March 2024 on PaySpace
- If the Exempt from Affordable Housing Levy custom field has been activated on company or employee level, then the custom field should be de-activated.
- De-activating the custom field will initiate the calculation of the employee and employer contributions.
- To de-activate the company-level exemption, navigate to Config > Basic Settings > Basic Company Information > Statutory Fields.
- To de-activate the employee-level exemption, navigate to the Employee > Basic Information > Basic Profile > Statutory Fields. This can also be done via Bulk Actions.
- If the March 2024 run is already closed and customers do not want to re-open the run, then a March post run can be created, named “KenyaAHLMarch StatutoryUpdate”, and will not be billed.
- In this scenario, customers are advised to activate the recalculation on the interim run by entering 0.01 on the tax code, SAL.
Should you have any questions regarding the Kenya The Affordable Housing Act 2024 Effective March 2024, please feel free to visit our Support page for more ways to get in touch, or email us at [email protected]
The PaySpace Team