A section of Kenyans will be exempted from paying the housing levy according to proposals made in the Draft Affordable Housing Regulations 2024.
This is a deviation from an earlier proposal that every individual would be subject to a 1.5 per cent income deduction to go towards the realisation of the Affordable Housing Programme.
In the new proposals, a section of Kenyans living abroad will be exempted from the Housing Levy as well as different types of income enjoyed by out-of-work Kenyans.
“A person or category of persons may be exempted from the payment of the Levy where that person is exempted from the imposition of taxes under an international agreement or a host country agreement to which Kenya is a part of,” the Draft reads in part.
Additionally, an income or a class of income may be exempted from the Levy where the income is derived from the pension or gratuity paid to a person upon termination of a contract.
Kenyans who receive payment in the form of reimbursement of medical expenses will also not be subjected to the 1.5 per cent income deduction.
This will also encompass individuals being reimbursed for travel and accommodation expenses for work-related activities.
The Draft has also clarified that insurance compensation will not be deemed as an income eligible for Housing Levy deduction.
Parliament has also been given the power to introduce an Act that could exempt more individuals from the levy as deemed required.
Deductions towards the Affordable Housing Levy started in March after President William Ruto assented the Affordable Housing Bill into Law.
Under the program, President William Ruto envisions to construction of 250,000 housing units every year.
The project is expected to solve the housing crisis in the country as well as create job opportunities for Kenyans.
