The Central Organization of Trade Unions (COTU) has reached a significant agreement with the government regarding the use of the Affordable Housing Levy, following concerns raised by workers over the misuse of their contributions.
COTU Secretary General Francis Atwoli announced the deal after a high-level meeting with President William Ruto at State House. At the heart of the union’s concern was the use of worker funds for projects like market construction, which COTU said were initiated without proper consultation.
Under the new agreement, all physical and social infrastructure funded through the Housing Levy will be developed only in areas where affordable housing projects are located. Atwoli noted that the only exceptions will be for essential nearby facilities, such as schools or clinics, that directly support the housing developments.
“Moving forward, all associated physical and social infrastructure will be constructed in locations where affordable housing projects are situated,” Atwoli said. “In exceptional cases, the Government may upgrade existing nearby facilities to meet service delivery goals.”
In a move aimed at easing access to affordable housing, the government has also agreed to reduce the required down payment for workers seeking to purchase the houses. The deposit has been lowered from 10% to 5% of the unit’s purchase price, a change COTU says will enhance affordability.
Furthermore, workers who have been contributing to the fund will be given priority in housing allocations, a long-standing demand of the union.
To ensure transparency and proper use of funds, a new oversight committee will be established. This committee will monitor how funds are reallocated and ensure that revenue generated from supporting projects like markets is reinvested in the housing initiative.
COTU hailed the agreement as a major win for workers and a step forward in protecting their interests. “We commend President William Ruto for engaging with us and addressing our concerns,” said Atwoli. “This agreement reaffirms the importance of workers in national development and ensures their contributions are used transparently and responsibly.”
