Landlords are now required to remit 1.5 per cent of their gross rental income starting May 9.
According to a letter dated May 6, written by the Kenya Revenue Authority Head Domestic Taxes Department, North Rift region, the amount will be due by the ninth of every month going forward.
The taxman also reminded employers that the Affordable Housing Levy (AHL) will be charged at the rate of 1.5 percent, including gross rental income and sales receipts (the amount chargeable to turnover tax).
“The Kenya Revenue Authority recognizes and appreciates your invaluable contribution to Government of Kenya revenue mobilization,” KRA announced in a letter to employers in the region.
“The Affordable Housing Act 2024 introduced Affordable Housing Levy (AHL) for all persons. This is therefore, to remind you to remit the AHL by the due date of 9th of every month, starting this month of May 2024.”
AHL, which was assented into law by President William Ruto in March this year, mandates employers to deduct 1.5 percent of gross salaries from employers with employees matching similar amounts. It also applies to those in the informal sector.
In November last year, the High Court declared the levy illegal but allowed the state to keep collecting deductions until January 10, 2024.
However, on January 26, 2024, the Supreme Court stopped the state from collecting the funds, terming it unconstitutional.
To comply with the High Court’s ruling on the illegality of the AHL, which was limited to salaried employees and not all workers, the Parliament amended the act to include those in the informal sector.
