NAIROBI, Kenya – The Central Organization of Trade Unions (COTU) has sounded the alarm over what it describes as a dangerous diversion of the Housing Levy, warning that newly passed regulations could open the door to misuse of funds meant to provide affordable homes for Kenyan workers.
In a statement on Tuesday, COTU accused Parliament of watering down the intent of the Affordable Housing Programme by expanding the scope of the levy to cover unrelated social infrastructure.
“Under the Affordable Housing Regulations, housing levy funds may now, erroneously, be used to construct health facilities, pre-primary education centres, police posts, fire stations, markets, and even open spaces,” the union said, warning that this could derail the core objective of building decent homes for workers.
COTU said the inclusion of these additional projects—while potentially beneficial to communities—could dilute accountability and allow MPs to redirect housing levy resources into pet projects under the guise of “associated infrastructure.”
The union now wants President William Ruto to intervene and suspend the implementation of the regulations. It is also calling for a fresh round of public participation to rewrite the rules and restore the levy’s original purpose.
“COTU reiterates its unwavering support for the Affordable Housing Programme,” the statement added. “But we will not stand by as our members’ contributions are diverted from their intended purpose.”
The Housing Levy, which deducts 1.5% from workers’ gross pay, has been one of the Ruto administration’s most contentious policy tools.
While it has been upheld by the courts, the programme continues to face questions over transparency, planning, and priorities.
COTU’s concerns come amid broader scrutiny of how the levy is managed, with critics warning that the fund risks becoming a political slush pile rather than a solution to Kenya’s housing crisis.
