The government has come out strongly to defend its decision to use funds from the Affordable Housing Levy to construct markets and other social infrastructure, amid rising criticism from the Central Organization of Trade Unions (COTU).
COTU, in a statement issued earlier this week, accused the government of deviating from its original commitment to use the levy solely for the construction of affordable housing. The union expressed concern that the newly introduced Affordable Housing Regulations create loopholes allowing Members of Parliament to redirect housing levy funds into projects unrelated to actual housing, such as markets, health centers, and schools.
According to COTU, such an approach undermines the core purpose of the fund — to provide decent and affordable housing for Kenyan workers. The union warned that expanding the scope of the levy’s usage could open the door to misappropriation and dilute accountability.
However, Housing Principal Secretary Charles Hinga dismissed the claims as misleading, pointing out that COTU was part of the taskforce that helped draft the very regulations it now criticizes.
“COTU was represented in person in committees that formulated this Act and regulations. Even in 2018, the Act clearly said — houses, plus social and physical infrastructure that make settlements work,” said Hinga.
He emphasized that affordable housing extends beyond just buildings. “We can’t just build houses and leave people without markets, hospitals, and schools. People who live in these areas can’t afford transport. So the infrastructure must come with the housing,” he noted.
Hinga further argued that the beneficiaries of the levy — Kenyan workers — are the same people who will use the markets and social amenities, which will be managed by county governments.
The debate escalated following President William Ruto’s public confirmation that the housing levy would fund the construction of 260 markets nationwide.
With both sides standing firm, resolving the disagreement is crucial for the successful implementation of the affordable housing initiative and maintaining public trust in the programme.
