The Central Organisation of Trade Unions (Kenya) has raised the alarm over what it terms as the misappropriation of the Affordable Housing Levy, warning that redirecting workers’ contributions to non-housing projects threatens to derail the programme’s core objective.
Speaking on Saturday, June 7, 2025, COTU Secretary General Francis Atwoli accused the government of sidelining labour unions in policy decisions that directly affect workers.
Funds misuse
Atwoli cautioned that the levy, which was initially meant to facilitate the construction of affordable homes for Kenyan workers, was being increasingly diverted to infrastructure projects already covered by the national budget.
“As COTU (K), we are clear and unequivocal that there was no consultation because if there was any, we would never have agreed to the affordable housing levy being used to build amenities and infrastructure that are already budgeted for within the National Budget,” Atwoli said.
He warned that if this trend continues unchecked, the housing levy could end up funding large-scale government projects like roads and dams, leaving workers without the homes they were promised.
The union has now turned to President William Ruto to restore the integrity of the levy, calling for urgent action to refocus the initiative on its intended purpose.
“We are calling upon His Excellency the President, Dr. William Samoei Ruto, to urgently intervene and ensure that the Affordable Housing Levy remains for delivering decent, dignified, and affordable homes for Kenyans,” Atwoli appealed.
The warning comes amid the government’s intensified push to roll out housing projects across the country.
President Ruto recently launched the Mukuru Affordable Housing project in Nairobi, where more than 1,000 units were handed over to new homeowners.
Hinga’s claims
Atwoli’s sharp statement followed remarks by Housing Principal Secretary Charles Hinga on Friday, June 6, 2025, in which the PS claimed that COTU had participated in drafting the housing regulations and was well aware of the scope of the levy’s application.
“It came as a surprise to us, the statement by COTU, because COTU was one of the very few organisations that had the privilege of drafting the Act. They are actually represented in person,” Hinga said.
Hinga further argued that infrastructure like clinics, markets, and schools is essential to make housing settlements complete, and therefore justify the broader use of levy funds.
“I saw COTU saying we are misusing workers’ funds. But it is the same workers who would use the markets and get the houses,” he added.
But in a firm rebuttal, Atwoli dismissed Hinga’s assertions as misleading and reiterated that no formal consultation with the union’s Executive Board ever took place, and no resolution was passed to support the current regulations.
He maintained that no individual or board representative has the mandate to commit COTU (K) without executive approval and warned that workers’ trust must not be abused under the guise of development.
