The Government has agreed to lower the deposit required for purchasing affordable housing units from 10 per cent to 5 per cent, following a consultative meeting between President William Ruto and Central Organisation of Trade Unions (Kenya) Secretary General Dr Francis Atwoli on June 18.
In a statement released by COTU (K) on June 18, Atwoli confirmed that several reforms had been made to ensure the Affordable Housing Levy is applied strictly for its intended purpose and to directly benefit salaried workers.
“COTU (K) wishes to inform Kenyan workers and the public that following a high-level consultative meeting between H.E. President Dr. William Samoei Ruto and the Secretary General of COTU (K), Dr. Francis Atwoli,” the statement read in part.
Atwoli announces housing levy
The meeting was also attended by COTU Assistant Secretary General Ernest Nadome, who is a Director at the Affordable Housing Board.
Among the key resolutions was the immediate suspension of market construction using the Affordable Housing Levy, a move aimed at refocusing the fund on actual housing development.
Atwoli said that the government further committed to refunding all funds already used to build markets under the housing programme.
Moving forward
The COUTU SG also stated that moving forward, all social and physical infrastructure supported by the levy will only be constructed within approved housing projects.
In exceptional cases where essential facilities like schools cannot be built within a project, Atwoli added, the government will support nearby alternatives that serve the housing units.
Also Read: Rutos Govt Confirms Diversion of Housing Levy Funds to Other Areas
In addition, salaried workers will be given priority in the allocation of housing units, and those contributing to the levy will be automatically considered, excluding individuals falling under the social housing category.
The Government has also agreed to form a special committee to recover and rechannel funds that were previously diverted to market construction.
Committee to recover housing levy funds
The committee will comprise representatives from national and county governments under the oversight of the Affordable Housing Board.
Atwoli welcomed the outcome of the meeting, saying it was a positive response to concerns raised by workers.
Also Read: Kenyan MPs Hatch Plan to Redirect Affordable Housing Billions- COTU
“We thank the President for his openness to dialogue and commitment to ensuring that the levy serves Kenyan workers,” he said.
This comes after previously the COTU (K) secretary, Atwoli had raised concerns of the housing levy funds being misused and re directed to other projects by the Kenyan MPs.
Atwoli opposed the government’s move to use the housing levy funds on projects such as constructing schools, roads and hospitals.
Follow our WhatsApp Channel and X Account for real-time news updates.
