The Kenya Revenue Authority (KRA) is intensifying efforts to enforce the 1.5% housing levy among informal sector workers, warning that defaulters risk having their bank accounts frozen and PINs blocked.
While the levy has been deducted from salaried employees since July 2023, compliance among informal traders remains low.
The Affordable Housing Board and KRA plan to crack down on non-compliant businesses, including bars, salons, and corner shops, by conducting on-site inspections.
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KRA has deployed paramilitary revenue service assistants to identify defaulters, with enforcement measures including PIN deactivation, asset seizures, and travel bans under the Tax Procedures Act.
The government argues that the levy is crucial for funding affordable housing, but many Kenyans view it as an added financial burden alongside other new taxes like the Social.Health Authority (SHA) contribution.
Meanwhile, The Kenya Revenue Authority’s Customs and Border Control has surpassed it's Monthly target as Customs taxes reached a historic monthly performance of Sh82.554 billion in January 2025.
