NATIONAL HOUSING DEVELOPMENT FUND | THE FINANCE ACT 2018 – KENYA

The Finance Act 2018 was enacted by adding the following on Section 86, thus technically amending employment act, 2007 by inserting this text after section 31.

31A. (1) An employer shall pay to the National Housing Development Fund in respect of each employee—

         (a) the employer’s contribution at one point five per centum (1.5%) of the employee’s monthly basic salary;

         and

        (b) the employee’s contribution at one point five per centum (1.5%) of the monthly basic employee’s salary:

Provided that the sum of the employer and employee contributions shall not exceed five thousand shillings (Kshs.5,000) a month.

NB: This section shall become effective upon the gazettement of regulations prescribing the requirements for qualification to the scheme by the Cabinet Secretary responsible for housing in consultation with the Cabinet Secretary responsible for finance.