The government of President William Ruto has admitted to redirecting Housing Levy funds to other areas—escalating tensions with the Central Organisation of Trade Unions (COTU-K).
In a statement dated Saturday, June 5, 2025, the State Department for Housing and Urban Development addressed the issue, defending the move as being in line with legal provisions under the Affordable Housing Act, 2024.
“The inclusion of associated social and physical infrastructure is neither a loophole nor a misuse of the Housing Levy,” the department said, responding to concerns raised by COTU.
Housing Principal Secretary Charles Hinga backed the redirection of the funds, citing that the 2024 Act allows the use of Housing Levy proceeds for not only constructing affordable homes but also for related infrastructure—such as access roads, water, sewer systems, and social amenities needed to support housing projects.
COTU, however, has criticized the move, accusing the government of betraying workers’ trust and misusing public contributions meant strictly for affordable housing. The organization maintains that any spending outside actual housing units undermines the purpose of the controversial levy.
This standoff adds pressure to the already contentious Housing Levy policy, which has been the subject of court battles, public protests, and criticism from civil society.
