The Secretary-General of the Central Organisation of Trade Unions–Kenya (COTU-K), Francis Atwoli, has appealed directly to President William Ruto to intervene in an intensifying dispute between workers’ representatives and the government over the management and future use of the Affordable Housing Levy funds.
At the heart of the disagreement is a government plan to redirect billions of shillings collected from workers under the housing levy towards building various other social infrastructure projects — a move that COTU believes undermines the very purpose of the fund.
In a strongly-worded statement released on Saturday, June 7, Atwoli urged President Ruto to step in immediately and help resolve the matter before it escalates further.
“We are asking His Excellency the President, Dr. William Samoei Ruto, to urgently step in and make sure the Affordable Housing Levy remains focused on its intended goal — to deliver affordable, dignified, and decent homes for Kenyan workers,” said Atwoli.
Concerns Over Misuse of Funds
The disagreement began earlier in the week, on Tuesday, June 3, when COTU raised alarm about changes to the housing levy regulations.
The union warned that the updated rules might open the door for lawmakers to reroute the funds towards non-housing projects — a move they believe is both unconstitutional and exploitative to workers who contribute to the fund.
Atwoli warned that the government’s new strategy could lead to the mismanagement and misuse of billions of shillings already collected through the levy.
He pointed out that the revised regulations propose using the money to build public infrastructure such as roads, dams, and other high-cost developments — projects that are already allocated funds in the national budget.
“If this trend is allowed to continue,” Atwoli said, “the Affordable Housing Levy will end up being used for unrelated development projects, and the workers — who are the main contributors — will be left without the affordable housing they were promised.”
Lack of Consultation
COTU also criticized the government for allegedly failing to consult them while drafting the new housing regulations, despite the significant financial contributions made by workers.
As the primary labor union in Kenya, COTU said they deserved a direct role in shaping the policies that affect worker finances and welfare.
However, Housing Principal Secretary (PS) Charles Hinga responded on Friday, June 6, strongly refuting COTU’s claims. Hinga stated that COTU had been involved in the regulatory process from the beginning and even had a representative who helped draft the Affordable Housing Act.
“We were surprised by COTU’s statement,” Hinga said. “They were among the few organizations that actually participated in the development of the law. They were physically present and actively involved.”
COTU Rejects PS Hinga’s Defence
COTU, however, dismissed Hinga’s remarks, insisting that the representative referred to by the PS did not have the authority to make decisions or commitments on behalf of the entire organization.
They argued that involvement by one individual cannot be taken to mean COTU, as an institution, endorsed the final content of the new regulations.
The union challenged the Housing Ministry to provide evidence in the form of written minutes, official letters, or executive board approvals showing that COTU had indeed supported the regulations.
Concerns Over Expanded Use of Housing Levy
The proposed use of housing levy funds — beyond just building homes — includes the construction of healthcare centers, nursery schools, basic education institutions, fire stations, police posts, markets, social halls, public open spaces, and other community-based infrastructure.
While the government views this as expanding the scope of affordable housing to include essential amenities, COTU insists this goes far beyond the original intent of the levy and could amount to an abuse of workers’ contributions if not carefully monitored.
This growing standoff now places pressure on President Ruto to act, as both sides stand firm in their positions, and public scrutiny over how billions of taxpayer shillings are managed continues to intensify.
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