The government collected KSh73.2 billion in housing levy during the financial year 2024/25, surpassing its initial target of KSh63.2 billion by KSh10 billion, a new report has revealed.

The levy, which is deducted at the rate of 1.5% of gross monthly salaries, continues to draw mixed reactions from Kenyans. While the collection exceeded projections, the report shows that much of the money remains unutilized, with construction under the Affordable Housing Project still being rolled out in phases.

According to the findings, the unused housing levy funds have been invested in Treasury Bills to safeguard the money while generating additional revenue for the government.

The move is aimed at ensuring financial prudence as authorities prepare to scale up affordable housing construction across the country.

Despite the strong collection figures, questions remain about:

The government has consistently defended the levy, saying it is a key pillar in addressing Kenya’s housing deficit by providing decent and affordable homes to citizens.