Employees from both the public and private sector across the country will be expected to part ways with 1.5 per cent of their monthly income as a Housing Fund Levy starting from May.
A notice published on local dailies on Tuesday states that the employers will be expected to deduct and submit the said levy for themselves and their employees, to the Kenya Revenue Authority (KRA) before 9th of each and every month.
"Both the employer and the employee shall each contribute 1.5% of the employee's monthly basic salary, provided that the sum of the total monthly contributions shall not exceed five thousand shillings. Voluntary contribution may also be made to the scheme at a minimum of two hundred schillings per month," reads the KRA notice in part.
A KRA notice on Housing Fund Levy published in a local daily.
The Housing Fund Levy will be used to facilitate cheap and affordable houses for Kenyans, which is one of the Big Four Agenda of the Jubilee government.
However, the move has been received with mixed reactions.
Kenyans have taken it to different social media platforms to air their views with most of them raising complaints on how the tax man (KRA) will be pinning them to walls.