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Affordable Housing Levy

1.5% from the employee, 1.5% matched by the employer, no cap, filed via KRA.

Affordable Housing Levy

1.5% from the employee, 1.5% matched by the employer, no cap, filed via KRA.

The Affordable Housing Act 2024 introduced a mandatory levy on every employed Kenyan. It funds the Affordable Housing Board's national delivery programme. Unlike older housing schemes the levy is not optional — every active employee contributes.

Rate

SideRateCap
Employee1.5% of gross monthly salaryNo cap
Employer1.5% of gross monthly salary (match)No cap

AHL applies on the same gross-pay base as SHIF — basic plus cash allowances. Non-cash benefits (BIK) are excluded because the levy is on cash compensation.

Tax treatment

Following the Tax Laws (Amendment) Act 2024, the employee's AHL contribution is an allowable pre-PAYE deduction — it reduces taxable income before the PAYE bands are applied. The employer's 1.5% match is a business cost.

Filing

AHL is collected by KRA on behalf of the Affordable Housing Board. Returns are due by the 9th of the month following the pay period — same calendar as PAYE — and are filed via the KRA AHL portal.

1

Generate the AHL CSV

Statutory Exports → AHL card → Download CSV. Each row carries KRA PIN, name, gross, employee AHL, employer AHL and the combined total.

Statutory Exports

Missing the 9th-of-the-month deadline attracts a penalty of 2% of the unpaid amount per month, on top of interest at the prevailing CBK rate. Build the AHL filing into your payroll month-end like PAYE.

Kenya law that applies