Important Update: Housing Levy Implementation in Your August Payroll!
Jul 31st, 2023

Important Update: Housing Levy Implementation in Your August Payroll!


As a leading HR and Payroll tech company, we strive to keep you informed about significant changes that may impact your payroll processes. Recently, the Kenyan government presented the Finance Bill 2023 with several tax adjustments, and we have some crucial updates to share regarding the Housing Levy. This new levy, which will be 1.5% of uncapped monthly wages, is set to be implemented starting August 2023, after the High Court lifted the suspension of the bill. We are here to guide you through the process of incorporating it into your August payroll. Read on to understand the implications and how FaidiHR will ensure a seamless transition for your organization.


Understanding the Housing Levy

The Housing Levy is a significant tax obligation introduced as part of the Finance Act 2023. It will be calculated at 1.5% of employees' uncapped monthly wages, with both the employer and employee each contributing 1.5% (making a total of 3%). The levy is expected to be payable starting August 2023.


Seamless Integration with FaidiHR

At FaidiHR, we understand the importance of accurate and compliant payroll management. As such, we are diligently working to ensure that your August payroll accurately reflects the Housing Levy deductions for both employers and employees. Our advanced HR and Payroll software is equipped to handle these changes seamlessly, ensuring a smooth transition for your organization.


No Refund Option for Housing Levy

It's essential to note that the Housing Levy will be considered a tax rather than a contribution. This means that employees who decline to arrange or obtain a housing loan from the National Housing Development Fund (NHDF) will not have the option for a refund of their contributions.


Stay Informed and Prepared

To stay informed and prepared for the implementation of the Housing Levy in your August payroll, we recommend taking the following steps:

  1. Ensure that employee wage details are accurately recorded in our system, reflecting their uncapped monthly wages.
  2. Familiarize yourself with the Housing Levy calculation method, which is 1.5% of the uncapped monthly wages for both employer and employee. You can check our Net Pay Calculator for precise calculations.


Communicate with your employees about the upcoming change and the importance of the Housing Levy's timely deduction.


Count on FaidiHR

Rest assured, we are committed to providing you with the best support during this transition. Our dedicated team is available to assist you with any queries or concerns you may have. As always, our mission is to empower your business with cutting-edge HR and Payroll solutions that ensure compliance, accuracy, and efficiency.



With the Housing Levy set to be implemented in your August payroll, FaidiHR stands ready to guide you through this change smoothly. You can book a demo via this link: We are dedicated to making your HR and Payroll management hassle-free, so you can focus on your organization's growth and success. Should you have any questions or require assistance, do not hesitate to reach out to our support team at


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