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The Central Organisation of Trade Unions, Kenya (COTU-K), has expressed deep concern over proposed regulations that could potentially divert the Affordable Housing Levy from its core purpose.
In a press statement released on June 3, 2025, and signed by Secretary General Francis Atwoli, the union cautioned that the newly adopted Affordable Housing Regulations by the National Assembly open the door to misuse of funds.
He called on President William Ruto to urgently intervene.
While the regulations are yet to be ratified by the Attorney General, COTU has warned that if implemented as they are, they could allow Members of Parliament to redirect housing levy funds into unrelated sectors such as police stations, schools, health facilities and other amenities.
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President William Ruto inspected the Soweto East Zone B Affordable Housing Project on Friday, May 24, 2025
“These regulations, which are in our possession, will introduce a loophole that could see Members of Parliament channel housing levy funds into projects that fall outside the core mandate of providing decent and affordable housing for Kenyan workers,” said Dr. Atwoli.
According to the statement, the proposed use of funds for constructing police stations, health facilities, schools, social halls, markets, and other forms of "associated social infrastructure" deviates from the initial promise made to Kenyan workers when the levy was introduced.
While acknowledging the importance of these services, COTU maintains that their inclusion under the housing levy lacks transparency and dilutes the programme’s original purpose.
Dr. Atwoli emphasised that Kenyan workers, who shoulder the burden of the levy and contribute nearly 90% of the funds, were not consulted during the formulation of these regulations.
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Francis Atwoli
The union also pointed out that its representative on the Affordable Housing Board was sidelined throughout the drafting process.
“At no point were the Kenyan workers represented by COTU (K), who form 90% of the contributors, nor their representative on the board consulted during the drafting of these regulations,” the statement reads.
Without a doubt, no form of any meaningful public participation involving Kenyan workers through COTU (K) was conducted before the regulations were adopted by Parliament.
COTU is now demanding that the regulatory process be halted immediately and that a new, inclusive process be launched, one that involves worker representation and prioritises the intended objectives of the levy.
The union is calling for the redrafting of the regulations to ensure that the Affordable Housing Fund is used solely for building homes for Kenyan workers.
While reiterating its support for the Affordable Housing Programme, COTU warned that it would not support any measures that divert funds away from their primary goal.
The union is urging President Ruto to take decisive action to protect the rights of workers and guarantee that their contributions are used strictly for the intended purpose.