The government has strongly responded to claims made by Central Organisation of Trade Unions-Kenya (COTU-K) Secretary-General Francis Atwoli, accusing him of spreading false information about the use of housing levy funds.
This comes just days after Atwoli raised concerns that the newly introduced regulations by Members of Parliament could create loopholes for misuse of billions meant for the Affordable Housing Programme.
On Tuesday, June 3, Atwoli pointed out that recent regulations passed by lawmakers could open the door for funds collected through the housing levy to be used on unrelated projects.
He expressed fears that these changes might allow Parliament to channel the money into ventures not directly tied to affordable housing.
According to Atwoli, the regulations—though approved by Parliament—are yet to receive legal clearance from the Attorney General.
He warned that under these new guidelines, money meant for building houses might be diverted to set up facilities such as health centres, pre-primary and basic education institutions, fire stations, police posts, social halls, markets, and recreational spaces.
He argued that all these could be classified as “associated social infrastructure,” which he believes is a broad and potentially misleading category.
In a firm response on Friday, June 6, Housing Principal Secretary Charles Hinga refuted COTU’s claims, stating that COTU was fully involved in the drafting process of the housing regulations.
He expressed surprise at Atwoli’s statements, saying that COTU had representatives who directly contributed to shaping the Affordable Housing Act.
“We were shocked to see that kind of statement from COTU because they were among the few organisations that actively participated in the formulation of the law. They had a seat at the table and were physically present during discussions,” Hinga said.
PS Hinga defended the government’s decision to include other amenities in the use of housing levy funds. He explained that constructing houses without essential services like schools, hospitals, or markets would defeat the purpose of creating liveable communities.
According to him, the idea is to develop complete neighbourhoods that serve the real needs of Kenyan families.
“You can’t just put up houses and forget about the surrounding environment. If there are no schools, clinics, or marketplaces nearby, then you haven’t really solved the problem.
That’s why the law includes not just affordable housing, but also related infrastructure projects,” Hinga explained.
Atwoli had earlier said that this approach would amount to misusing workers’ money, arguing that such funds should strictly go into building houses for contributors.
But Hinga disagreed, insisting that it’s the same workers who will end up benefiting from the social amenities provided through the extended use of the funds.
“I saw COTU claiming that we are misusing the workers’ money, but they’re the ones who will use those markets and live in those houses. This is a holistic approach to solving housing problems,” Hinga said.
COTU, clearly dissatisfied with how the process is unfolding, has demanded that the government halt the current implementation of the regulations.
The union wants fresh consultations involving all workers represented by COTU to take place before moving forward with the housing project.
This heated exchange comes at a time when President William Ruto is stepping up efforts to roll out the Affordable Housing Programme across the country.
The President recently commissioned the Mukuru Affordable Housing Project, where over 1,000 new homeowners received keys to their houses—a move seen as a major milestone in the national housing agenda.
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