You might notice a new deduction on your April pay slip.
The government through the Housing Ministry and the Kenya Revenue Authority on Tuesday notified the public that the Housing Fund levy has come into effect.
According to a notice seen by Ureport, both the employer and employee will contribute 1.5 percent of the employee’s monthly basic salary, provided the sum total monthly contributions shall not exceed Sh5000.
Also, voluntary contributions may be made to the scheme at a minimum of Sh200 per month.
“The Employers are required to deduct and remit the levy together with other statutory levies from both the employer and employees by the 9th of each succeeding month together with other payroll statutory deductions.
“The first contribution shall be due by 9th May 2019,” read the statement.
The Housing Fund shall be used to finance the Affordable Housing Scheme under the Big 4 Agenda.
According to the statement, the benefits of contributions in respect of the employee shall include purchase of a home under the scheme.
In case of ineligibility for a home, the contribution may be transferred to a pension scheme, another person under the scheme or cash to self, spouse or a dependent child.
The government also stated that information relating to the payment process shall be communicated in due course.