The Kenya Revenue Authority (KRA) has surpassed its revenue target for the Housing Levy Fund, collecting Ksh73.2 billion in the 2024/2025 financial year.
The amount exceeded projections by Ksh10 billion, after KRA had initially set its target at Ksh63.2 billion. Officials attributed the overperformance to improved compliance among salaried Kenyans, despite ongoing concerns and legal disputes over the deductions.
The levy, charged at 1.5 per cent of an employee’s gross salary, was introduced in March 2024, with employers required to remit collections by the ninth working day of each month.
According to reports, nearly half of the collected funds remain unused, as the affordable housing project continues to be rolled out in phases across the country. The government has since opted to invest surplus funds in Treasury bills and bonds to generate returns while awaiting deployment.
The announcement comes weeks after President William Ruto defended the levy, saying it would transform housing and infrastructure in Kenya. Speaking during a groundbreaking ceremony at Tom Mboya University in Homa Bay, the President highlighted the construction of affordable homes, student hostels, and more than 400 markets nationwide as part of the programme.
“This is the transformation that the housing levy and the housing fund will bring to us as a nation,” Ruto said, insisting the contributions will benefit Kenyans in the long term.
 has surpassed its revenue target for the Housing Levy Fund, collecting Ksh73.2 billion in the 2024/2025 financial year.){kind=link}
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