NAIROBI, Kenya — Treasury Cabinet Secretary John Mbadi has hinted at possible changes to the Affordable Housing Levy, citing growing frustration among Kenya’s salaried workforce.
Speaking during a session with senators on Wednesday, Mbadi acknowledged that while the levy was introduced with good intentions, many workers are feeling the pinch in their monthly income.
“There is a discussion on seeing how to restructure it because it has a lot of serious benefits, in my view. But at the same time, individual employees with payslips have complaints which cannot be ignored,” he said.
The housing levy, part of the Kenya Kwanza administration’s 2023 plan to boost access to affordable homes, mandates that both employees and employers each contribute 1.5% of an employee’s gross salary.
This brings the total contribution to 3% per worker, channeled directly into the housing program.
Although the government touts the initiative as a step toward solving the country’s housing deficit, critics especially within the formal employment sector argue that the deductions are straining their finances without immediate returns.
Mbadi assured lawmakers that discussions are underway to rethink the structure of the levy and promised more updates soon.
Whether the revisions will include optional contributions or alternative funding models remains to be seen.
