GOVERNMENT REJECTS COTU’S MISAPPROPRIATION CLAIMS ON HOUSING LEVY

The government has refuted accusations from the Central Organization of Trade Unions (COTU) that billions from the affordable housing levy will be diverted to funding social infrastructure like markets, rather than exclusively housing projects. COTU raised concerns earlier this week, alleging the government was deviating from its commitment to solely use the housing levy for housing construction.

In a statement released on Tuesday, COTU warned that the Affordable Housing Regulations contain a loophole that could enable Members of Parliament to redirect housing levy funds towards projects outside its goal of providing affordable housing for Kenyan workers. However, Housing Principal Secretary Charles Hinga countered COTU’S claims asserting that the union is misleading the public, yet it was part of the team that drafted the law that allows for the construction of both houses and social amenities. He emphasized that affordable housing not only encompasses residential units but it is also a comprehensive package that must include essential facilities like markets, schools, and hospitals for everyday Kenyans who lack distant amenities.

Hinga also responded to COTU’S accusation of misusing workers’ contributions, pointing out that the same workers would benefit from occupying the houses, visiting the markets, and utilizing the social services. The controversy intensified following President William Ruto’s recent announcement that the housing levy would indeed be used to construct markets together with the affordable housing developments.