Legal gap allows workers, firms to evade housing levy

Nancy Gathungu

Auditor-General Nancy Gathungu.

Photo credit: Dennis Onsongo | Nation Media Group

Workers and their employers are evading the monthly 1.5 percent housing levy deductions, helped by a loophole in the law that failed to give the Kenya Revenue Authority (KRA) powers to crack down on defaulters.

An audit of the Affordable Housing Fund, which manages the billions of shillings the government gets from the levy, revealed that thousands of taxpayers are paying tax and not the housing levy.

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