Starting May 9, landlords are mandated to remit 1.5 percent of their gross rental income, according to a letter dated May 6 from the Kenya Revenue Authority (KRA) Head of Domestic Taxes Department for the North Rift region.
The letter, seen by the Star, indicates that this levy, known as the Affordable Housing Levy (AHL), is due by the ninth of every month going forward. The AHL was introduced by the Affordable Housing Act 2024 for all individuals.
“This is, therefore, to remind you to remit the AHL by the due date of the 9th of every month, starting this month of May 2024. For clarity, AHL will be charged at the rate of 1.5 percent on the gross income received or accrued,” the letter states.
The gross income subject to this levy includes rental income, sales receipts (subject to turnover tax), and any other sales, before VAT is applied.
KRA also encourages landlords to take advantage of the Tax Amnesty program introduced in the Finance Act, 2023, by settling all outstanding principal taxes up to December 2022 by June 30, 2024.
For further clarification, landlords and other affected individuals can reach out to their account manager or visit the nearest KRA office.
Additionally, the Affordable Housing Act introduced a 1.5 percent levy on the gross salary of each employee or an individual’s received or accrued gross income not subject to the Levy. Employers are required to match each employee’s contribution to the Levy amount.
KRA specifies that employers must declare the AHL under sheet “M” of the PAYE return on iTax, generate a payment slip under the tax head “agency revenue” and tax sub-head “Housing Levy,” and make payments at KRA agent banks or via mobile money through eCitizen Paybill Number 222 222 or by dialling *222#.
According to KRA, the employer’s contribution to the Affordable Housing Levy is an allowable deduction under Section 15 of the Income Tax Act.
Starting May 9, landlords are mandated to remit 1.5 percent of their gross rental income, according to a letter dated May 6 from the Kenya Revenue Authority (KRA) Head of Domestic Taxes Department for the North Rift region.
The letter, seen by the Star, indicates that this levy, known as the Affordable Housing Levy (AHL), is due by the ninth of every month going forward. The AHL was introduced by the Affordable Housing Act 2024 for all individuals.
“This is, therefore, to remind you to remit the AHL by the due date of the 9th of every month, starting this month of May 2024. For clarity, AHL will be charged at the rate of 1.5 percent on the gross income received or accrued,” the letter states.
The gross income subject to this levy includes rental income, sales receipts (subject to turnover tax), and any other sales, before VAT is applied.
KRA also encourages landlords to take advantage of the Tax Amnesty program introduced in the Finance Act, 2023, by settling all outstanding principal taxes up to December 2022 by June 30, 2024.
For further clarification, landlords and other affected individuals can reach out to their account manager or visit the nearest KRA office.
Additionally, the Affordable Housing Act introduced a 1.5 percent levy on the gross salary of each employee or an individual’s received or accrued gross income not subject to the Levy. Employers are required to match each employee’s contribution to the Levy amount.
KRA specifies that employers must declare the AHL under sheet “M” of the PAYE return on iTax, generate a payment slip under the tax head “agency revenue” and tax sub-head “Housing Levy,” and make payments at KRA agent banks or via mobile money through eCitizen Paybill Number 222 222 or by dialling *222#.
According to KRA, the employer’s contribution to the Affordable Housing Levy is an allowable deduction under Section 15 of the Income Tax Act.
