KRA Directs Landlords to Pay 1.5% Housing Levy on Gross Rental Income

Starting May 9, landlords must remit 1.5 percent of their gross rental income.

The Kenya Revenue Authority Head of Domestic Taxes Department, North Rift region, issued a letter dated May 6, specifying that the amount will be due by the ninth of each subsequent month.

KRA highlighted that the Affordable Housing Act 2024 mandated the introduction of the Affordable Housing Levy for all individuals.

“This is, therefore, to remind you to remit the AHL by the due date of the 9th of every month, starting this month of May 2024. For clarity, AHL will be charged at the rate of 1.5 per cent on the gross income received or accrued,” the letter reads in part.

The taxman clarified that the mentioned income includes gross rental income, gross sales receipts (amount subject to turnover tax), and any other sales before applying VAT.

Landlords and other affected individuals can seek clarification by contacting their regular account manager or visiting the nearest KRA office.

“We would also like to urge you to take advantage of the Tax Amnesty program introduced in the Finance Act, 2023 by paying all the principal taxes outstanding for the period up to December 2022, by June 30, 2024,” the tax authority added.

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