Lands Cabinet Secretary Alice Wahome will be empowered to revoke exemptions granted to Kenyans for the payment of the 1.5 per cent Housing Levy, as outlined in the draft Affordable Housing Levy Regulations 2024.
Under the proposed regulations, the CS will have the authority to revoke exemptions under three specific circumstances. One of the primary reasons for revoking exemptions is if individuals obtain them fraudulently.
Furthermore, individuals who provide false information when applying for exemptions under the Housing Levy scheme will also face the revocation of their exemption status.
Thirdly, should the CS be informed that the exempted Kenyan does not meet the requirements outlined in law, the benefit will be revoked.
"The Cabinet Secretary may, in writing, make a recommendation to the Cabinet Secretary responsible for the National Treasury for the revocation of an exemption granted in accordance with section 6 of the Act where the Cabinet Secretary has received information that disqualifies the person from further being exempted.
"Revocations will be done where the CS determines that the person who has been exempted omitted material information when making the application under regulation 5 and that if such information was submitted, that information may have affected the eligibility of the person or the income from the exemption," read the statement in part.
Who Will Be Exempted
Following President William Ruto's assent to the Affordable Housing Bill, all Kenyans are obligated to pay the 1.5 per cent Housing Levy.
The 1.5 per cent levy will be deducted from the gross monthly salary for employed Kenyans and gross income for Kenyans in the informal sector.
Among those exempted will be Kenyans whose income is derived from the pension or gratuity paid to a person upon termination of a contract.
"An income or a class of income may be exempted from the Levy where the income is reimbursement of medical expenses or travel and accommodation expenses for a work-related activity or derived from an insurance compensation" read the proposal in part.
The Housing Levy is currently being effected on payslips following a directive by the Kenya Revenue Authority (KRA).
As per the late, the deductions are required to be remitted to the authority by the 9th day of every month.
