Government Denies Misuse of Affordable Housing Levy Funds

The government has dismissed accusations by the Central Organization of Trade Unions (COTU) that billions collected through the affordable housing levy are being misused to fund projects like markets instead of being dedicated solely to housing.

Principal Secretary Charles Hinga refuted the claims, emphasizing that COTU was part of the committee that helped draft the law and its regulations.

Earlier this week, COTU accused the government of failing to keep its promise to use the housing levy exclusively for building affordable homes for Kenyan workers. The organization expressed concern that the funds might instead be spent on other projects, including health facilities, schools, fire stations, police posts, and public spaces, under the label of “associated social infrastructure.”

In response, Hinga clarified that affordable housing goes beyond building houses, stating it must include important amenities for communities to thrive.

COTU has since issued a new statement, distancing itself from any involvement in plans to redirect the housing levy funds for non-housing projects.