Auditor-General Nancy Gathungu has raised concerns over the collection of the Affordable Housing Levy, saying the Kenya Revenue Authority (KRA) failed to register some eligible taxpayers on the levy system.
Speaking before the National Assembly Finance and National Planning Committee, Gathungu told lawmakers that weaknesses in KRA’s systems affected revenue collection under the government’s Affordable Housing Programme.
According to the Auditor-General, KRA did not place all eligible taxpayers on the Affordable Housing Obligation platform, creating gaps that may have reduced the amount of money collected through the levy.
The issue emerged during discussions on the Finance Bill, 2026, as Parliament reviews the government’s plans to increase revenue for the next financial year.
The housing levy remains one of the key funding sources for the government’s affordable housing programme. Employers and employees contribute to the levy to support housing projects and related infrastructure.
Gathungu warned that revenue targets could remain difficult to achieve if authorities fail to address weaknesses in tax administration and collection systems.
Beyond the housing levy, the audit identified several other concerns within KRA’s operations. These included unresolved tax debts, compliance challenges, missing excise stamps, and the issuance of Tax Compliance Certificates to some taxpayers with outstanding obligations.
She also questioned the accuracy of revenue projections, noting that repeated revenue shortfalls should prompt a review of current collection mechanisms.
Members of the parliamentary committee expressed concern over the findings and called for stronger efforts to seal revenue leakages.
Lawmakers are expected to question KRA officials further as scrutiny of the Finance Bill, 2026 continues.
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