KRA is set to intensify enforcement against workers, traders and employers who fail to pay the housing levy, with defaulters facing account freezes, asset seizures and KRA PIN deactivation
The government has stopped investing housing levy collections in short-term Treasury bills as it accelerates the implementation of affordable housing projects.
Housing PS Charles Hinga said the Affordable Housing Fund currently has zero money invested in Treasury bills, attributing the shift to improved budget absorption and earlier procurement.
Initially, collections exceeded spending, with about Ksh46 billion invested in Treasury bills in February 2025. The investments earned the government Ksh4.2 billion in interest by June 2025.
However, absorption has improved significantly. In the year ended June 2026, the State Department for Housing spent Ksh129.96 billion, representing 92.18% of its Ksh140.99 billion development budget. The levy has raised Ksh206.46 billion over three financial years.
