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Kenya: Affordable Housing Act signed by president

The president signed the Affordable Housing Act.

March 28, 2024

The president on 19 March 2024 signed the Affordable Housing Act.

The Act amends the legislative provisions held unconstitutional by the Court of Appeal in January 2024. Read TaxNewsFlash

Key provisions covered under the Act include:

  • Definition of key terms
  • Imposition of the levy
  • Allowable deductions and personal reliefs
  • Procedure for payment of affordable housing levy
  • Categories of affordable housing
  • Establishment of the affordable housing fund and the affordable housing board
  • Eligibility criteria and application procedure for affordable housing unit
  • Voluntary savings
  • Ownership of affordable housing units
  • Implementation of affordable housing scheme
  • Role of county governments in affordable housing scheme
  • Accountability of the fund

Section 4 and 5 of the Act, which govern the imposition and collection of the levy, became effective 19 March 2024. Employers are required to deduct and remit the levy beginning with the March 2024 payroll.

Read a March 2024 report prepared by the KPMG member firm in Kenya

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