How to Pay for the 1.5% Housing Levy if You Don't Earn a Salary

The Housing Levy was introduced through the Finance Act of 2023, with Kenyans required to pay 1.5% of their gross pay towards the Affordable Housing Program that enables them to own a house.

While contributions for salaried Kenyans are effected on their payslips at the end of each month and remitted to the Kenya Revenue Authority (KRA), little is known about how Kenyans who are self-employed or unemployed can contribute to the fund and also benefit from the program.

Here is how to pay for the Housing Levy if you are non-salaried

1. Log into your iTax account using your PIN and iTax password.
2. Click on the Payments tab and select Payment Registration on the e-Payment tab.
3. Filing in the e-Payment Registration Form by selecting the applicable Tax head, i,e Agency revenue.
4. Select the applicable Tax Subhead - in this case, select Housing Levy.
5. Select the applicable Payment Type - Self-Assessment Tax.
6. Select the applicable Tax Period.
7. On the dialog box for Liability Details, select the details of the Payment records, input the amount to be paid, and click the add option.
8. Select Mode of Payment, ie, other Payment Modes, and submit.
9. Afterward, download the e-payment slip and take it to the bank of your choice to make a payment. If you have MPesa, then you can proceed to M-PESA > Paybill >Paybill number is 222222 > Account No (this is the payment registration number on the payment slip) >enter the amount > enter your PIN and send. A confirmation receipt of the payment shall be sent to your registered email address. 

‍Important Factors to note

Amount Payable:  Non-salaried Kenyans contribute to the Housing Levy at a rate of 1.5% of their monthly gross income.

Payment Deadline: Payments are made through the eCitizen platform and must be made by the ninth working day after the end of the month.

3 Steps Towards Owning an Affordable House 

Register 

Individuals interested in buying Affordable Houses will have to register on the Boma Yangu housing portal, either online or through the USSD - *832#.

Save

To activate your account, you will have to save a minimum of Ksh200. After activation, you can save any amount at any time and as many times as you wish. You can save via mobile money across all networks, Credit and debit cards, or cash deposit at any of the authorised custodial banks (KCB, NCBA, and Cooperative Bank)

As a registered and saving member, you will then view the available projects on Boma Yangu and select your preferred location and unit.

The savings go towards the payment of the deposit needed for the house. Initially, the deposit needed was 10% and that has been reduced to 5%.

Own

Once the chosen project has been completed, the registered member will be notified when the allocation process starts.

"You will be asked to select a unit and notified of the amount you need to have saved to be eligible for allocation. The allocation process for homes will be done through a fair and transparent process," read an explainer on Boma Yangu.

Affordable Housing Loan to construct Homes in the Village

For Kenyans who may choose to build their homes, they will be eligible to construct homes in the villages. To facilitate the construction, the eligible applicants will receive a maximum loan amount of Ksh4 million.

 "An application for a rural affordable housing unit under section 52 of the Act shall be made, in writing, to the Board and accompanied by building plans approved by the respective county government and a valuation report of the land issued by the chief government valuer or a valuer registered under the Valuers Act,"

"They shall also submit a priced bill of quantities prepared by a registered quantity surveyor, and a copy of the title to the land and an official search of the land as proof of ownership of the land," read the regulations in part.