NAIROBI, Kenya – A Parliamentary committee has called for enhanced oversight of Kenya’s Sh63 billion Housing Levy, urging that the Controller of Budget (CoB) be granted full authority to monitor the funds to prevent potential mismanagement.
The Constitution Implementation Oversight Committee (CIOC) says that without stronger supervision, the government’s ambitious Affordable Housing Programme risks delays and inefficiencies despite the significant resources collected from Kenyan workers.
Currently, the law limits the CoB’s ability to supervise the Housing Levy, a mandatory 1.5 per cent deduction from employees’ gross monthly income, matched by employers, designed to fund affordable housing units.
CoB Margaret Nyakang’o told MPs that a loophole “prevents any independent oversight” of the fund, which “severely undermines” her mandate.
To strengthen accountability, the committee recommends amending the Public Finance Management Act to bring all special funds and levies under the CoB’s supervision.
It also proposes that the National Treasury implement an integrated payment system with the Central Bank of Kenya to track levy collection and expenditure.
Housing and Urban Development Principal Secretary Charles Hinga earlier reported to Parliament that the government collects between Sh5 billion and Sh6 billion monthly from the levy.
While these funds are invested in Treasury bills and bonds, the delivery of affordable housing units has lagged.
The committee further recommends updating the Controller of Budget Act to grant enforcement powers, remove reporting restrictions on economic developments, and introduce sanctions for violations of public finance regulations.
MPs flagged persistent wasteful expenditure, including multiple unauthorised accounts that appear to bypass existing financial controls.
President William Ruto, who launched the Affordable Housing Programme on March 19, 2024, pledged to construct at least 200,000 housing units annually for low- and middle-income earners.
According to the President, the programme has already delivered 230,000 homes, with plans to generate 572,000 jobs next year.
In his recent State of the Nation Address, Ruto highlighted the wide-ranging economic impact of the initiative, noting that it supports thousands of professionals—from architects and engineers to plumbers, carpenters, and small enterprises involved in construction and fittings.
“Three years ago, when we said we would deliver affordable housing, the cynics dismissed it as a fantasy. When they realised we were serious, they called it impossible. And when we broke ground across the country, they suggested the projects would stall,” Ruto said.
The CIOC’s recommendations now set the stage for potential legislative reforms that could strengthen financial oversight and ensure that the Housing Levy fully delivers on its promise of affordable housing for Kenyan citizens.
