The government has dismissed allegations by the Central Organization of Trade Unions (COTU) that the Affordable Housing Levy is being misused to fund projects outside its intended scope.
Earlier this week, COTU raised concerns over proposed Affordable Housing Regulations, warning that they may create loopholes allowing Members of Parliament to divert levy funds to unrelated developments such as markets, health facilities, and police posts.
COTU argued that such projects fall outside the mandate of providing affordable and decent housing for Kenyan workers.
In a statement released Tuesday, COTU said: “Under the Affordable Housing Regulations, housing levy funds may now, erroneously, be used to construct health facilities, pre-primary education centres, fire stations, police posts, social halls, and markets under the guise of associated social infrastructure.”
However, Housing Principal Secretary Charles Hinga refuted the claims, saying COTU was present during the drafting of the legislation and fully aware that the Act included the development of both housing and supporting amenities.
“COTU was represented in person in the committees that formulated this Act and regulations. Even in 2018, the Act clearly said — houses, plus social and physical infrastructure that make settlements work,” Hinga said.
He emphasized that affordable housing extends beyond building homes. “It’s not just four walls. It’s about markets, hospitals, and schools for Kenyans who can’t afford to travel far for basic services,” the PS added.
Hinga further defended the inclusion of such infrastructure, pointing out that the same workers contributing to the levy will be the primary beneficiaries.
“COTU is saying workers’ money is being misused, but those markets will be visited by those very workers — and the markets will be run by county governments,” he noted.
The controversy was further fueled by President William Ruto’s recent declaration that the housing levy will be used to construct 260 markets across the country, in conjunction with affordable housing units.
“We are using the housing money to build 260 markets across the country,” said the President.
