NAIROBI, Kenya – Vietnam Gas President Doanh Chau has criticized Kenya’s housing levy, calling it a flawed and burdensome approach that risks delivering little value to Kenyan workers while stifling more effective private sector solutions.
In a statement titled “Rethinking Kenya’s Housing Strategy,” Chau argued that taxing the formal workforce to finance state-led housing construction is both economically regressive and structurally unsound.
“Public housing schemes without transparency or strong institutions often deliver substandard results—poor-quality units, misused funds, and socially isolated communities,” he warned. “Kenya risks falling into the same trap.”
The housing levy, introduced under President William Ruto’s Affordable Housing Programme, requires formal sector workers to contribute a portion of their salaries toward government housing projects.
But the initiative has drawn growing criticism, with court challenges and public skepticism over whether it will truly address the country’s housing shortage.
Chau contrasted Kenya’s model with that of the Somali community, which he praised for building entire neighborhoods through self-organization, private capital, and diaspora support, without heavy reliance on state funding.
“The Somali approach proves that when empowered, the private sector and civil society can achieve far more than bloated public programs,” he said.
Instead of more taxation, Chau called on the Kenyan government to act as an enabler, not a competitor, to private developers.
He urged investment in critical infrastructure such as roads, water, and sewage; the development of master plans and zoning regulations that serve the public interest; and faster approval processes to unlock private investment.
“We don’t need more taxes. We need smarter governance,” Chau said. “Let’s stop turning housing into a political tool and start building frameworks that actually work for the people.”
His remarks come hours after President William Ruto handed over 1,080 newly completed social housing units in Mukuru.
Describing the event as “a turning point for the people of Mukuru and for Kenya,” Ruto emphasized that the homes represent more than shelter — they symbolize dignity, security, and upward mobility for residents who have long lived in Nairobi’s informal settlements.
