The government has rejected claims by the Central Organization of Trade Unions (COTU) that billions of shillings from the affordable housing levy are being misappropriated to build social infrastructure such as markets, rather than exclusively funding housing projects.
Earlier this week, COTU accused the government of deviating from its initial commitment to use the housing levy solely for constructing affordable homes for Kenyan workers. In a statement issued on Tuesday, the union expressed concern that the new Affordable Housing Regulations could create a loophole allowing Members of Parliament to divert funds into projects unrelated to housing. The statement warned that funds might be used to build health facilities, pre-primary and basic education centers, fire stations, police posts, social halls, markets, and open spaces under the guise of “associated social infrastructure.”
However, Housing Principal Secretary Charles Hinga dismissed these accusations, saying COTU was part of the committee that drafted the law and its regulations. “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,” he explained.
Hinga emphasized that affordable housing extends beyond just constructing four walls. It must encompass essential amenities such as markets, hospitals, and schools, especially for low-income residents who cannot afford long commutes for basic services. “People who live in these areas can’t afford transport. So, we can’t just build houses and leave them without amenities,” he added.
Responding to COTU’s concerns about misuse of workers’ contributions, Hinga reminded the union that the same workers who pay the levy will benefit from the markets and other facilities. “COTU is saying workers’ money is being misused, but those markets will be visited by those very workers, and the markets will be run by county governments,” he said.
The controversy was further ignited by President William Ruto’s recent declaration that housing levy funds would be used to build 260 markets nationwide, adjacent to affordable housing projects. “We are using the housing money to build 260 markets across the country,” the President announced.
As the debate intensifies, finding common ground between COTU and the government remains crucial to ensuring that the affordable housing initiative meets the aspirations of Kenyan workers while addressing their broader social needs.
Written By Rodney Mbua
