The government has made an astonishing admission that indeed it’s true that monies collected under the Housing Levy Fund has been redirected to other areas.
The admission comes in the face of shocking concerns raised by the Central Organization of Trade Unions (COTU-K) that contributions collected from its members were redirected to fund other government programs.
The State Department for Housing and Urban Development made the admission in a statement issued Saturday 5 June, 2025 and defended the move saying it was in line with legal provisions under the Affordable Housing Act, 2024.
“The inclusion of associated social and physical infrastructure is neither a loophole nor a misuse of the Housing Levy,” the statement outlined, in part.
Housing Principal Secretary Charles Hinga backed the redirection of the funds, citing that the 2024 Act allows the use of Housing Levy proceeds for not only constructing affordable homes but also for related infrastructure—such as access roads, water, sewer systems, and social amenities needed to support housing projects.
Through Secretary-general Francis Atwoli COTU has criticized the move, accusing the government of betraying workers’ trust and misusing public contributions meant strictly for affordable housing. The organization maintains that any spending outside actual housing units undermines the purpose of the controversial levy.
“As COTU (K) we are clear and unequivocal that there was no consultation because if there was any we would never have agreed to the affordable housing levy being used to build amenities and infrastructure that are already budgeted for within the National Budget,” said Atwoli, adding “If this trend persists, the affordable housing levy would soon be redirected to do other development projects like building of roads, dams, and other heavy expense projects while leaving workers exposed without decent housing.
“In light of this, we are calling upon His Excellency the President, Dr. William Samoei Ruto, to urgently intervene and ensure that the Affordable Housing Levy remains for delivering decent, dignified, and affordable homes for Kenyans.”
This development is a strange departure from the norm as the Secretary-general has in the past been fully supportive of government policy. Observers are quick to point out that the fallout could be occasioned by the government withholding unspecified favours to the powerful head of the giant workers union.
Whatever the truth the standoff now adds pressure on the already contentious Housing Levy policy, which has been the subject of court battles, public protests, and criticism from civil society.
Leave a Reply