The Central Organization of Trade Unions (COTU-K) has announced a major breakthrough in negotiations with the government over the management and use of the Affordable Housing Levy, following concerns raised about the diversion of worker contributions to non-housing projects.
COTU Secretary General Francis Atwoli revealed that a new agreement has been reached with the government to ensure that funds deducted from workers’ salaries under the Affordable Housing Levy will be redirected toward actual housing projects, rather than being used for unrelated infrastructure such as markets.
Speaking after a high-level meeting with President William Ruto at State House, Nairobi, Atwoli said the government has committed to halting the expansion of its market development programme under the levy and will instead refocus efforts and funds strictly on the delivery of affordable housing.
“We have reached a significant understanding with the government that puts Kenyan workers at the centre of the Affordable Housing Programme,” said Atwoli. “The government has agreed that any further use of the housing levy on projects such as market construction will be stopped. Instead, all focus will now be directed toward ensuring workers benefit from actual housing.”
One of the most notable outcomes of the meeting is a revision in the housing allocation process. Workers who contribute to the levy will now be prioritized in the allocation of houses. Additionally, the mandatory deposit required to access housing units has been slashed from 10% to 5%, making it more accessible to low and middle-income earners.
To strengthen accountability, a new oversight committee will also be formed. This body will be responsible for ensuring the proper reallocation of funds and for redirecting revenues from market-related infrastructure back into the core mandate of housing provision.
“This is a win for transparency, fairness, and the protection of workers’ rights,” Atwoli stated. “COTU appreciates the Government’s continued commitment to protect the interests of Kenyan workers. We particularly commend President William Ruto for his willingness to engage, listen, and act on the concerns raised, thereby reinforcing the central role of workers in national development.”
The agreement follows sharp criticism by COTU over what it termed as unilateral decisions by the government to use housing levy funds for the construction of markets and other infrastructure without consulting the workers’ union. The levy, which was introduced as part of the government’s Affordable Housing Programme, has faced legal and public scrutiny since its inception.
Analysts see this development as a pivotal moment in improving trust between the government and labour unions, with the potential to influence the broader implementation of social policy in Kenya. The creation of the oversight committee is also expected to boost transparency and public confidence in how public contributions are managed.
The revised plan will take effect immediately, with COTU and other stakeholders expected to participate actively in the formation of the oversight committee and monitoring of the fund’s reallocation.
Written By Rodney Mbua
