The government of President William Ruto has confirmed the diversion of Housing Levy funds to other areas—an issue that has created a stalemate between his administration and the Central Organisation of Trade Unions (COTU).
In a statement dated Saturday, June 5, 2025, the State Department for Housing and Urban Development clarified that the diversion of Housing Levy funds to other areas does not represent a loophole or misuse of the fund.
“The State Department for Housing and Urban Development acknowledges the concerns raised by the Central Organisation of Trade Unions (COTU-K) regarding the Affordable Housing Regulations. However, we respectfully clarify that the inclusion of associated social and physical infrastructure is neither a loophole nor a misuse of the Housing Levy,” the statement read.
Government of Ruto Confirms Diverting of Housing Levy Funds
Housing PS Charles Hinga has defended the government’s actions by quoting The Affordable Housing Act, 2024, which he states clearly provides for the design, development, and maintenance of affordable housing alongside associated social and physical infrastructure.
“This integrated approach is not incidental is central to the Act’s vision of creating dignified, livable communities,” Hinga stated.
According to the Housing PS, modern housing is more than just shelter. It requires access to schools, health facilities, markets, open spaces, and other social amenities that support everyday life.
Also Read: Atwoli Clarifies Claims of Supporting Diversion of Housing Levy to Build Markets
He argues that these components are essential for creating safe, inclusive, and economically vibrant neighbourhoods.
Additionally, he asserts that this approach is supported by the housing and urban development policy frameworks, global standards, and leading practices, and aligns with Kenya’s commitments under SDG 11 and the New Urban Agenda.
Moreover, he argues that the Affordable Housing Act guarantees COTU a seat on the Affordable Housing Board, ensuring worker representation in oversight and implementation, despite claims that they were not consulted on the diversion of hustler funds.
Atwoli Says He Was Not Consulted on the Diversion of Housing Levy Funds
At the same time, Hinga stated that indeed, COTU-K voluntarily forwarded the name of one of their members, Mr. Earnest Nadome, to be their representative in the formulation of the enabling regulations, a fact that has gone unnoticed by the top leadership of the Workers’ umbrella body, dismissing claims that they were not consulted.
Furthermore, Hinga stated that President Ruto’s government is open to dialogue and collaboration with all stakeholders, particularly COTU, through constructive dialogue in the interest of the program and the country at large.
Also Read: Shifting Goalposts: Housing Levy’s Slippery Slope to Misuse and Corruption
The Housing PS’s statement comes after Francis Atwoli, Secretary General of the Central Organisation of Trade Unions (COTU), claimed that COTU was not consulted regarding the alleged diversion of the Affordable Housing Levy funds.
On June 7, 2025, Atwoli stated that COTU would not have agreed to the use of these funds for building amenities and infrastructure already budgeted for in the National Budget, emphasising a lack of consultation in the process.
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