NAIROBI, Kenya, June 5 -Treasury Cabinet Secretary John Mbadi has indicated that the government may review the Affordable Housing Levy amid growing dissatisfaction from Kenya’s salaried employees.
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Appearing before senators on Wednesday, Mbadi acknowledged the levy’s original intent to address the country’s housing crisis but admitted it’s placing a financial burden on formal sector workers.
“There is an ongoing conversation on how to restructure it. I believe the program offers important benefits, but the concerns raised by employees with payslips are valid and must be taken seriously,” he told lawmakers.
The levy, introduced under the Kenya Kwanza government’s 2023 Affordable Housing Plan, requires a 1.5 percent contribution from both employees and employers amounting to 3 percent of a worker’s gross pay to finance the state-backed housing initiative.
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While the government defends the policy as a bold move to reduce the housing shortfall, many in the formal workforce argue that the deductions are unfair and yield no immediate benefit.
Mbadi assured that discussions on revising the levy are active, and changes potentially including flexible contributions or alternative financing strategies could be announced in the near future.
