- Central Organisation of Trade Unions’ (COTU) secretary-general Francis Atwoli accused the government of channelling Housing Levy funds to other projects
- The vocal trade unionist noted that the funds are being used to build schools, markets and police posts instead of purely affordable houses
- However, Housing PS Charles Hinga disclosed that the union was a member of the committee that created the legislation to build houses and supporting amenities
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The Kenyan government has slammed the Central Organisation of Trade Unions’ (COTU) secretary-general, Francis Atwoli, after he accused the state of misusing Housing Levy collections.
What did Atwoli say about the Housing Levy?
Atwoli revealed that billions of shillings deducted from workers’ payslips were used to build social infrastructure, such as marketplaces and schools.
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In a statement on Tuesday, June 3, Atwoli argued that the Affordable Housing Regulations would create a loophole that might enable lawmakers to use Housing Levy funds for projects that don’t directly relate to its main goal of giving Kenyan workers adequate, affordable homes.
“Housing Levy funds may now, mistakenly, be used to build health facilities, pre-primary education centres, basic education centres, fire stations, police posts, social halls, marketplaces, and open spaces under the Affordable Housing Regulations, all in the name of related social infrastructure,” part of Atwoli’s statement reads.
How did Housing PS Charles Hinga react?
However, Housing Principal Secretary (PS) Charles Hinga claimed that COTU misled taxpayers.
Hinga disclosed that the union was a member of the committee that created the legislation that allowed usage of the levy to build houses and supporting amenities.
“COTU was directly represented in the committees responsible for formulating this Act and its regulations. Moreover, in 2018, the Act explicitly stated that it covers not only housing but also the social and physical infrastructure necessary for functional settlements,” Hinga stated, as reported by Citizen TV.
For regular Kenyans who cannot afford to go far for services, Hinga maintains that affordable houses should be built together with schools, hospitals, and markets.
“Transportation is out of reach for the residents of these locations. Thus, we cannot just construct homes without providing them with facilities,” the PS insisted.
Hinga dismissed claims that the government was misusing workers’ contributions, noting that the same workers would be living in those homes, going to the markets, and enjoying the facilities.
“Even though COTU claims that workers’ money is being misappropriated, those workers themselves will visit those marketplaces, which are managed by county governments,” Hinga added.
Will the government restructure the Housing Levy?
In other news, Treasury CS John Mbadi announced plans to amend the 1.5% Housing Levy to exempt low-income Kenyans.
Kenyans have on several occasions expressed concerns over the deductions on their payslips amid the high cost of living.
This comes after recommendations from the World Bank in its 2025 Public Finance Review to the Kenyan government.
President William Ruto said Housing Levy contributors will now be able to obtain affordable home loans up to KSh 5 million at single-digit interest rates.
Source: TUKO.co.ke
