Landlords in the country are squarely in the government’s sights as authorities move to implement a controversial new levy aimed at financing affordable housing projects across the country.
In a letter seen by Sharp Daily, beginning this month, residential and commercial property owners must remit 1.5% of their gross rental income to state coffers under the Affordable Housing Levy (AHL) introduced through the Affordable Housing Act 2024.
The Kenya Revenue Authority has issued firms directives notifying taxpayers of the new obligation. “AHL will be charged at the rate of 1.5% on the gross income received or accrued,” stated a letter from the authority’s North Rift regional office dated May 6th. “This includes…gross rental income.”
The move to tax landlords promises to be deeply unpopular in a nation where rental housing is increasingly unaffordable for many. Property owners argue they are being unfairly targeted to fund a policy that should be financed through general taxation.
The levy is expected to raise money providing a dedicated funding stream for President Ruto’s ambitious plan to construct over 200,000 units every year.
The AHL is the latest in a series of revenue raising measures as Kenya’s government grapples with high debt levels and an economic slowdown.
