President William Ruto has offered a fresh explanation for why members of the public must pay the 1.5 percent Affordable Housing Levy.
The head of state emphasized that the housing levy deducted from workers’ earnings will not be raised despite the government’s 2026 minimum wage increase.
Speaking at Eldoret State Lodge in Uasin Gishu County on August 29, 2026, Ruto argued that Kenyan workers are not losing anything from the levy.
The government introduced new minimum wage rates in 2026 and published the wage order on June 26.
According to the new wage order, the new rates vary depending on the category of work and geographical area.
“If you are told to give 1.5 percent yet your salary has been raised by 10 percent, what loss is there? You have not suffered any loss,” Ruto explained.
His clarification on the 1.5 % housing levy follows criticism of the Affordable Housing Program, with opposition leaders currently calling for the housing levy to be scrapped.
1.5% housing levy
The Affordable Housing Levy was initially introduced through the Finance Act, 2023.
Under the arrangement, employees and employers have to contribute to the financing of the government’s affordable housing program.
However, the levy faced a major legal challenge, and the High Court declared the original levy unconstitutional in November 2023.
The government enacted the Affordable Housing Act in 2024.
In October 2024, the High Court dismissed petitions challenging the Affordable Housing Act and upheld the legislation, including the 1.5 percent levy.
Also Read: KRA to Freeze Bank Accounts of Kenyans Not Paying Housing Levy
Ruto on Job Creation
Beyond the deductions affecting formally employed workers, Ruto also defended the program, noting employment opportunities linked to affordable housing projects.
During his Eldoret address, the president questioned who would speak for Kenyans who do not receive payslips.
He also argued that government programs should benefit people outside formal employment.
“If you abolish the program, where will you take the 1.1 million youths working in the Affordable Housing Program?” William Ruto questioned.
The president also emphasized that the Affordable Housing Program has employed over 1.1 million Kenyans.
Also Read: Truth Behind Kenyans Losing Affordable Houses Purchased if Ruto Loses Elections
Development in Kenya
President William Ruto also noted the development Kenya has undergone under his government across different sectors.
In the agricultural sector, the president said the government has made reforms and subsidized the cost of seeds, fertilizers, and coffee.
According to Ruto, Kenya’s milk exports have increased from 4.6 billion liters to 5.6 billion liters. In contrast, the price of selling coffee has increased from KSh 60 to KSh 150 per kilogram under his regime.
In addition to the reforms in the agricultural sector, the president has announced that sugarcane farmers are set to receive a first-time-ever bonus in October.
In the finances of the country, the president stated that his administration has been able to increase the foreign currency from 5.7 billion dollars to 15.3 billion dollars in foreign exchange.
Additionally, he explained that the government has been able to pay the country’s debt worth 2 billion dollars and currently has 2.7 billion in cash in the National Infrastructure Fund.
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