Legal Alert | Kenya | The Cost of Making Home Ownership a Reality

Employers may soon be required to deduct and pay to the National Housing Development Fund (the Fund) 1.5 percent of employees’ monthly basic salary with an equivalent contribution being made by the employee, subject to a maximum monthly contribution of KES 5,000. The requirement was introduced into the Employment Act, 2007 through amendments contained in the Finance Act, 2018.

Employers are required to start making contributions to the Fund once the regulations prescribing the requirements for qualification to the scheme are gazetted by the Cabinet Secretary for Housing. To give effect to the Finance Act provisions, the draft Housing Fund Regulations, 2018 have been published and recently released for comments from members of the public and stakeholders. The Regulations are still under review and it is anticipated that they will certainly be amended in the coming weeks and months following the public participation and legislative process outlined below.

Click here to read a more comprehensive analysis on how the government plans to make home ownership affordable for Kenyans.

Should you have any queries or need any clarifications with respect to the above, please do not hesitate to contact Daniel Ngumy or Paul Mutegi.

Daniel Ngumy
Paul Mutegi
Principal Associate


The content of this alert is intended to be of general use only and should not be relied upon without seeking specific legal advice on any matter.