All employers and employees will remit a deduction of 1.5% from their monthly salaries.
This follows the move by President William Ruto to sign into law the Affordable Housing Bill.
The Head of State appended his signature on the bill at State House, Nairobi on Tuesday.
The signing into law now gives room for the housing levy deductions.
The Bill was approved in both Senate and National Assembly, though with amendments.
The law establishes four components of Affordable Housing: Social Housing Unit for persons earning less than Ksh.20,000, Middle Class for people earning above Ksh.49,000, General Affordable Housing for those earning between Ksh.20,000 to Ksh.149,000 and Rural Housing for those living outside urban areas.
