How Housing Levy Funds Could Be Misused In New Rules: Atwoli
Central Organisation of Trade Unions (COTU)-Kenya Secretary General Francis Atwoli raised concerns, warning that these regulations might create a loophole allowing lawmakers to funnel the money into unrelated projects
Viral Tea Ke Writer 
Members of Parliament (MPs) have recently passed new rules that could open the door for misuse of housing levy funds, potentially diverting them away from the Affordable Housing programme.
On Tuesday, June 3, Central Organisation of Trade Unions (COTU)-Kenya Secretary General Francis Atwoli raised concerns, warning that these regulations might create a loophole allowing lawmakers to funnel the money into unrelated projects, threatening the integrity of the housing initiative.
He pointed out that although MPs have approved the rules, they haven’t yet been cleared by the Attorney General, leaving the levy vulnerable to potential misuse.
President William Ruto during the handover ceremony of 1,080 completed housing units at the Mukuru Meteorological Site in Nairobi County on May 20, 2025. /PCS
"As COTU (K), we have noted with great concern that the National Assembly has adopted a set of Affordable Housing Regulations, which, fortunately, are yet to be ratified by the Attorney General. If adopted, these regulations, which are in the possession of COTU (K), 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," Atwoli alerted in a statement.
"Under the Affordable Housing Regulations, housing levy funds may now, erroneously, be used to construct health facilities, pre-primary education centres, basic education centres, fire stations, police posts, social halls, markets, and open spaces, under the guise of 'associated social infrastructure'. While these are all important public services, they fall well outside the scope of what Kenyan workers were promised when this levy was introduced."
Atwoli stated that COTU members, while backing the Affordable Housing programme, were left out of the process and not consulted when the new regulations were being drafted.
"It must be noted that COTU (K) supported the Affordable Housing Programme in good faith, with the understanding and expectation that our members, who shoulder the burden of this levy, would benefit directly through access to dignified, decent, and affordable housing," he added.
"Unfortunately, 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."
As a result, COTU has demanded an immediate halt to the current process and called for fresh, inclusive talks that involve all its members.
This development comes amid President William Ruto’s nationwide push for the Affordable Housing initiative. He recently commissioned the Mukuru Affordable Housing units, officially handing over homes to more than 1,000 new owners.
Earlier today, Ruto also announced that 20 per cent of all government-built affordable housing units will be reserved for the disciplined forces — including the Kenya Defence Forces and police — with a guarantee that these allocations will be protected to directly benefit the security sector.
