Ndindi Nyoro Criticises Housing Levy, Says Construction Sector Has Declined Despite Billions Collected

Kiharu MP Ndindi Nyoro has once again launched a scathing attack on the government’s economic policies, focusing particularly on the Housing Levy.

The outspoken legislator, who previously chaired the Parliamentary Budget Committee, argued that the levy has done more harm than good, claiming that it has hurt the very industry it was meant to uplift.

Speaking during an event in Nairobi on Monday, Nyoro pointed out that even though the levy surpassed its target by raising Sh73.2 billion in the 2024/25 financial year, the construction sector has not benefited. Instead, the industry has experienced a downturn.

He reminded Kenyans that before the levy was introduced, the sector was performing much better and expanding at a healthier pace.

The levy, introduced through the Affordable Housing Act of 2024, requires both employers and employees to contribute 1.5 per cent of gross monthly salaries—together amounting to a three per cent deduction.

The government promoted it as a cornerstone of the Affordable Housing Programme, promising that it would create jobs and stimulate rapid growth in the construction industry.

Nyoro, however, dismissed these claims.
“The government is literally taking Sh73 billion away from households and the private sector. The key question is—what are the real results?” he asked.

Decline in the Sector

The MP noted that data from the Kenya National Bureau of Statistics (KNBS) paints a worrying picture. According to the Kenya Economic Survey, the construction sector shrank by 0.7 per cent in 2024, compared to a 3.0 per cent growth recorded the previous year. He also highlighted that cement consumption, one of the strongest indicators of construction activity, fell sharply.

“During a year when the government claimed to be scaling up housing projects, cement usage dropped by 7.9 per cent, and steel consumption also declined,” Nyoro said.

He argued that the government’s claims about massive job creation in the housing programme are misleading. While some officials boasted that the initiative had created between 300,000 and 500,000 jobs, KNBS figures show the opposite.

“In 2024, employment in the construction sector actually shrank by 1.3 per cent. Total employment now stands at 223,400 people, which is even fewer than in 2022—when there was no housing levy at all,” Nyoro emphasised.

He further added that while the government celebrates supposed milestones, the economic reality is different.
“We may beat drums on one side to celebrate, but the economy cannot be deceived. The data clearly shows that the money taken from Kenyans through this levy was working better for the economy when it remained in their pockets,” he said.

Kenyans Build More Efficiently

According to Nyoro, ordinary Kenyans were constructing homes more efficiently on their own than the government is doing with the levy.

He noted that despite government advertisements and flashy images of housing projects circulating on social media, there is little to show in actual economic data.

“Pictures on billboards and social media posts should translate into real numbers in cement usage, steel consumption, and job creation—but all we see are photographs,” Nyoro argued.

KNBS figures confirm this trend. Private sector jobs in construction dropped from 226,300 in 2023 to 223,400 in 2024, while public sector jobs rose only slightly—from 9,700 to 9,900 over the same period.

For Nyoro, this proves that the levy is stifling growth. He insisted that the government needs to rethink its approach because, so far, Kenyans are paying heavily, yet the results are not matching the sacrifices being made.

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