President William Ruto Has Defended the Mandatory 1.5% Affordable Housing Levy Deducted From Paychecks of Salaried Employees

President William Ruto declared that those who are employed should be happy that they have jobs and should contribute to helping the less fortunate ones. The President said that paying the 1.5% Affordable Housing Levy from salaries was to support the less fortunate Kenyan citizens who do not have access to formal employment opportunities.

Speaking on Thursday, October 8, 2026, Ruto said that it did not mean that those who do not have access to formal employment opportunities are not as good as those who have jobs. The President was addressing critics who said that it was unfair to deduct the 1.5% affordable housing levy from workers’ salaries.

According to the President, he was not surprised at the criticism of the mandatory housing levy. Ruto said that he understood that it was not easy for everyone. The President said that the affordable housing levy was to give poor Kenyans access to affordable housing and economic opportunities.

According to him, employees who contribute 1.5% of their monthly gross salary to the levy and an additional 1.5% from their employers to the Kenya Revenue Authority (KRA) should be happy that they have access to formal employment. In addition, Ruto said that the Affordable Housing Scheme objective was to boost dignity as many Kenyans could not afford adequate housing.

“Think about the dignity of the 1.1 million Kenyans today who today can feed their families because you raised 1.5 percent of your salary to enable somebody else to work, get somebody else out of squalor, and get another Kenyan out of living in a slum where there is no water, electricity, or toilet. That is the dignity you are giving to a fellow Kenyan,” he stated.

The Affordable Housing Levy, which is a percentage of every employee’s monthly gross salary, is meant to boost the number of Kenyans who have access to affordable housing. The levy is an initiative of the government of Kenya. Employers are required to deduct 1.5% of an employee’s monthly gross salary and contribute an additional 1.5%. The Kenya Revenue Authority (KRA) collects the affordable housing levy.

The government has faced widespread condemnation from employees who do not see why they should contribute to the housing scheme. Some employees said that they do not benefit from the housing scheme.

The government defends the housing levy by saying that it benefits many citizens. For example, the government said that the housing levy would address the huge deficit of affordable housing in Kenya while simultaneously creating jobs.

It is worth noting that the affordable housing levy is provided under the Affordable Housing Act, 2024. Additionally, the law was challenged in the Court of Appeal in September 2026. Nevertheless, the Court of Appeal upheld the law.

According to Housing Principal Secretary Charles Hinga, KSh6 billion is generated from the affordable housing levy monthly. However, he added that the collected amount was inadequate to finance the 200,000 units of housing that the government aims to construct annually. It is in this regard that the government defends the housing levy. The levy will enable the government to fund the 200,000-units affordable housing plan.

The President’s latest comments defending the housing levy come as there is a heated debate on whether the 1.5% affordable housing levy is enough to fund the housing program and whether Kenyans should pay for a program that they do not benefit from directly.