COTU raises concerns on possible misuse of Housing Levy

In a statement on Tuesday, COTU noted that the Affordable Housing Regulations will introduce a loophole that could allow Members of Parliament to channel housing levy funds into projects that fall outside the core mandate of providing decent and affordable housing for Kenyan workers.

"Under the Affordable Housing Regulations, housing levy funds may now, erroneously, be used to construct health facilities, pre-primary education centres, basic education centers, fire stations, police posts, social halls, markets, and open spaces, under the guise of associated social infrastructure," read the statement in part.

COTU added that the regulations will undermine the initial intention of introducing the levy, to provide decent houses to Kenyan workers.

The Union has now called for President William Ruto's intervention, calling for an immediate halt to the process of implementing the regulations.

It also wants a fresh participation process to be initiated to redraft the regulations to safeguard the purpose and integrity of the Affordable Housing Levy.

"COTU reiterates its unwavering support for the Affordable Housing Programme, but we will not stand by and watch as our members' contributions are diverted away from the primary purpose of providing them with homes," it added.

The High Court ruled in October 2024 that the controversial levy introduced in 2023, as part of measures to shore up public finances, was lawful.

The verdict okayed President Ruto's scheme, after a previous court ruling had declared it illegal in November 2023.

Salaries Kenyans pay 1.5 per cent of their monthly salaries to the Levy and a similar amount is matched by employers.

President Ruto has remained defiant that he will not bow to censures from critics, insisting that his plan to reform the national housing structure must be achieved.

He has defended the housing fund, saying it will construct homes for the poor, create employment and reduce public borrowing.