The Kenya Kwanza government has backdated the mandatory contribution towards the Housing Fund proposed in the Finance Act, 2023 to July 1.
This comes after the Court of Appeal lifted the suspension of the conservatory orders barring the implementation of the contentious Finance Act, 2023.
This paves the way for the implementation of new tax measures.
Through a public notice on Wednesday, the Ministry of Lands, Public Works, Housing and Urban Development said the levy is now in effect from July 1, 2023.
“The levy is payable by the employee and employer at a rate of one point five per centum (1.5 per cent) of the employee's gross monthly salary by the employee, and one point five per centum of the employee's monthly gross salary by the employer, as outlined in the Finance Act 2023,” read the notice.
At the same time, the government has appointed the Kenya Revenue Authority (KRA) as the collection agent.
“KRA will issue a communication advising on the mode of collection,” the notice added.