Central Organisation of Trade Unions–Kenya (COTU-K) Secretary-General Francis Atwoli has urged President William Ruto to step in and resolve a growing disagreement between COTU and the State Department of Housing over the handling of housing levy funds.
The dispute is centred around plans to redirect billions collected from the Affordable Housing Levy to fund other public projects, a move COTU says is a betrayal of the original goal.
In a strong statement issued on Saturday, June 7, Atwoli appealed directly to the President to intervene and protect the integrity of the levy. According to him, the funds should strictly go toward building affordable and decent homes for Kenyan workers.
“We are appealing to His Excellency, President Dr William Samoei Ruto, to take urgent action and ensure the Affordable Housing Levy remains focused solely on delivering quality, affordable, and dignified housing for Kenyan citizens,” Atwoli said.
This controversy began earlier in the week, on Tuesday, June 3, when COTU raised concerns about new regulations that allow for the diversion of housing levy money. Atwoli warned that this shift in focus might open the door to misuse and mismanagement of the funds.
He said the redirection could lead to the money being used on projects already covered under the national budget, such as roads and dams, which would make the housing initiative redundant.
“If this pattern continues unchecked, the housing levy will be diverted to other costly infrastructure projects—like roads and dams—leaving workers with no hope for affordable and dignified shelter,” he warned.
COTU emphasized that the organisation, which represents millions of Kenyan workers who contribute to the housing levy, was not consulted when the new Affordable Housing Regulations were being drafted.
They argued that proper stakeholder engagement did not take place, and the interests of workers were not taken into account.
But on Friday, June 6, Housing Principal Secretary Charles Hinga issued a statement refuting Atwoli’s allegations.
He said it was misleading for COTU to claim they were not involved in the process. According to Hinga, COTU had representatives present during the formulation of the housing regulations and even helped draft parts of the law.
“We were surprised by COTU’s statement. They were among the few organisations that actively took part in drafting the Affordable Housing Act. Their representatives were physically present and involved,” Hinga said.
In response, COTU dismissed Hinga’s claims, saying their representative on the Affordable Housing Fund Board was not authorised to make decisions independently or speak for the entire union.
They also challenged the Housing PS to produce official documentation—such as written resolutions, meeting minutes, or formal letters—from COTU’s Executive Board showing support for the new regulations.
COTU’s criticism comes at a time when the government plans to expand the use of housing levy funds beyond affordable housing.
According to the proposed regulations, the funds could be used to construct a variety of public facilities including hospitals, early childhood education centres, basic education institutions, fire stations, police posts, markets, social halls, and recreational spaces.
While these projects are essential for national development, COTU insists that using housing levy money for them defeats the core purpose of the fund and undermines the trust of workers.
They argue that the funds should strictly be used for their intended purpose—building homes for ordinary Kenyans who struggle with high rent and lack of decent housing.
The growing tension between COTU and the State Department of Housing now places President Ruto in a delicate position as he may be forced to intervene to prevent further fallout and restore public confidence in the Affordable Housing Programme.
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