Housing Benefit (HB) in Kenya

  • It is a taxable benefit on the employee where the employer provides accommodation
  • For agricultural employees, HB is equal to 10% of pensionable pay
  • For directors other than whole time service directors HB is the higher of:
  • 15% of total income from all sources or
  • fair market rental value or
  • actual rent paid by employer.
  • For employees provided with accommodation and meals, HB is equal to 10% of pensionable pay.
  • For ordinary employees and whole time service directors, HB is the higher of:
  • 15% of pensionable pay or
  • fair market rental value or
  • actual rent paid

In all the above cases, HB is reduced by amount of rent contributed by the employee.

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