Kenyans are set to face tougher times as the 1.5 percent Housing fund levy is set to take effect next month.
The new Housing Fund Levy is a partnership between the Ministry of Transport, Infrastructure, Housing, Urban Development, and Public Works and the Kenya Revenue Authority (KRA) in a bid to achieve the big four agenda set by President Uhuru Kenyatta.
Both the employer and the employee shall each contribute 1.5% of the employee monthly basic salary provided that the sum of the total monthly contribution does not exceed Five thousand shillings.
Voluntary contributions to the scheme can also be made at a minimum of two hundred shillings per month.
The new Housing Fund Levy is set to commence on 9th of May with the employers required to deduct and submit the levy and other statutory deduction by 9th of the following month.
Advantages of the Housing Fund Levy.
Contributors of the new levy will enjoy benefits such as the purchase of a home under the affordable housing scheme and in case of ineligibility for home, the contribution may be transferred to a pension scheme, to another person under the scheme and as cash to self, wife or a dependent child.