The government has come out strongly against Central Organisation of Trade Unions (COTU-K) Secretary General Francis Atwoli, accusing him of spreading misleading information regarding the usage of funds collected under the Affordable Housing Levy.
This comes just days after Atwoli raised concerns over what he termed as dangerous loopholes in the new housing regulations passed by Parliament, which he claimed could allow for the misuse of billions of shillings.
On Tuesday, June 3, Atwoli issued a public statement warning that newly adopted regulations by Members of Parliament (MPs) posed a serious risk to the integrity of the Affordable Housing Programme.
According to him, the changes opened the door for the redirection of housing levy funds towards unrelated developments, thereby weakening the original intent of the project.
Atwoli pointed out that the regulations, although passed by MPs, had not yet been signed off by the Attorney General.
He argued that the guidelines could now permit funds meant strictly for housing to be diverted toward other public projects such as building health facilities, fire stations, markets, social halls, schools, and even police posts, all under the vague label of “associated social infrastructure.”
In his statement, Atwoli cautioned that such vague language in the law could be exploited, potentially allowing public funds deducted from workers’ salaries to be used for purposes beyond affordable housing.
He called for urgent attention to the matter and questioned why workers’ contributions were not being strictly used for their intended purpose.
However, on Friday, June 6, Housing Principal Secretary Charles Hinga issued a sharp response to Atwoli’s claims.
Speaking at a press conference, Hinga expressed surprise at COTU’s stance, stating that the trade union had not only been informed but had also actively participated in shaping the very regulations it was now criticizing.
“It was shocking to hear COTU’s statement because they were part of the few institutions that helped draft the Affordable Housing Act. They were physically present and played a role in shaping these laws,” said Hinga.
The PS defended the inclusion of social infrastructure projects in the housing programme, explaining that housing cannot be developed in isolation from essential community services.
According to him, it would be counterproductive to construct housing units in areas where residents would have no access to markets, clinics, schools, or other basic facilities.
“You cannot build homes in areas without nearby hospitals, schools, or trading centres. That’s why the law specifically mentions affordable housing along with associated infrastructure. These facilities are part of a complete package for the ordinary Kenyan,” Hinga added.
Addressing Atwoli’s concern that the funds were being misused, Hinga argued that the same workers contributing to the levy are the ones who stand to benefit the most from this comprehensive development approach.
“COTU claimed that we’re misusing workers’ funds, but the same workers are the ones who will live in these houses, shop in the markets, and get treatment at the health facilities,” he explained.
COTU, however, has remained firm in its position. The organization has demanded that the entire process be halted immediately to pave the way for fresh talks involving all stakeholders, particularly workers represented by COTU.
They insist that the current direction undermines the spirit of the programme and fails to prioritize the welfare of contributing workers.
This war of words unfolds at a time when President William Ruto is intensifying the rollout of the Affordable Housing initiative across the country.
Just recently, the President officiated the handover of over 1,000 housing units under the Mukuru Affordable Housing Project, providing keys to new homeowners as part of the government’s ambitious plan to address the country’s housing deficit.
As the debate rages on, both sides remain steadfast—Atwoli calling for stricter oversight and worker-centered policies, while the government maintains that a holistic development model is essential for delivering truly livable communities.
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