Employees face more deductions as MPs vote to pass 1.5% housing levy

Members of Parliament have voted to pass the controversial housing development levy contained in the Finance Bill, 2023.

184 MPs voted in support of the housing tax while 72 opposed it in a heated debate between the Kenya Kwanza allied MPs and their counterparts from the Azimio opposition coalition.

Once the Finance Bill 2023 is enacted into law, employees will be charged a 1.5 per cent tax on their gross salary starting July this year.

Employers will also be required to match the 1.5 per cent housing deduction which is expected to fund the government's Affordable Housing Programme.