In recent months, there has been much discussion and controversy about the adoption of the housing levy in Kenya, which is a mandated deduction from employees’ salaries to fund housing construction throughout the country. While this levy is intended to address critical housing challenges, it is vital to note that several exclusions exist to safeguard specific categories of people. Let’s look at the top exclusions available under this programme.
1. Terminal illness.
Individuals with terminal illnesses receive one of the most merciful exclusions from the housing levy. These people are frequently classed as disabled due to their medical condition. Given the financial hardships they already endure as a result of medical bills, exempting them from extra taxes is a compassionate and logical action.
2. Owning a rural home on certified land.
If you already own a rural home on approved land, you are exempt from housing levies. This exception recognises that the levy is primarily meant to contribute to the construction of new homes and infrastructure, and it would be unfair to impose it on people who have already invested in their housing needs.
3. Annual Turnover < Ksh 290k
Small businesses play an important role in Kenya’s economy, and the housing levy exempts firms with an annual revenue of less than 290,000 Kenyan Shillings from the deduction. This exception recognises the obstacles that small businesses confront and guarantees that they can continue to operate and develop without incurring undue financial obligations.
4. Age Exemptions.
a) Individuals aged 55 and up are free from housing levy deductions. This exemption recognises that people are approaching retirement age and should focus on their retirement financial planning.
b) Similarly, those aged 50 and up in the informal sector are free from the charge.
5. Mortgage Subscriptions.
If you have a mortgage that is not described in the Housing Levy Act, you are immune from levy deductions. This exemption ensures that individuals who have already committed to finance their homes through alternate methods are not burdened twice by the fee.
The Kenyan government’s new Housing Levy is intended to enhance affordable housing efforts. It is critical to establish your exemption status with the appropriate authorities.
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