- COTU and the government agree to strictly use the Housing Levy for housing projects only.
- Funds will no longer be diverted to build markets or other unrelated infrastructure.
- Workers contributing to the levy will now get priority in house allocation.
- Deposit for house access reduced from 10% to 5%.
- An oversight committee will be formed to ensure transparency and accountability.
The Central Organisation of Trade Unions (COTU-K) has made a breakthrough after raising red flags over how the Affordable Housing Levy was being used. COTU had voiced strong opposition to the diversion of workers’ contributions toward projects that had nothing to do with housing.
Following a closed-door meeting with President William Ruto at State House, Nairobi, COTU Secretary General Francis Atwoli announced that the government has now agreed to return focus to the original goal — building homes for Kenyan workers.
Atwoli confirmed that the government has committed to ending the use of housing levy funds for projects like market construction. From now on, every shilling collected under the Affordable Housing Levy will go into actual housing developments.
“We have reached a significant understanding with the government that puts Kenyan workers at the centre of the Affordable Housing Programme,” Atwoli said. “All efforts and funds will now focus on building houses for contributors.”
Better Access for Workers and Lower Deposit
One of the biggest wins from the meeting was the agreement that all contributors to the levy will now be prioritised when houses are being allocated. In another welcome move, the initial deposit required to get a housing unit has been lowered from 10% to 5%, making the dream of owning a home closer for many low- and middle-income workers.
To ensure the fund is not misused again, a special oversight committee will be created. Its job will be to keep track of how the money is used and make sure it is not redirected to non-housing projects.
Atwoli praised this step, saying it’s a big win for openness, fairness, and the future of Kenya’s working class.
“This is a win for transparency, fairness, and the protection of workers’ rights,” he noted. “We thank President Ruto for hearing us and acting swiftly.”
This deal comes after COTU strongly condemned earlier moves by the government to fund non-housing projects using the levy. The union had accused the state of ignoring workers’ voices. Now, with both sides back on the same page, trust seems to be slowly returning.
Analysts believe this new agreement could change how future public funds are managed and help shape fairer policies for the common mwananchi.
The new plan kicks in immediately, with COTU and other players taking part in forming the oversight team and ensuring funds are properly used.
