Gov’t defends use of housing levy funds to build markets

The government has dismissed claims by the Central Organization of Trade Unions (COTU) that billions from the affordable housing levy will be improperly used to construct social infrastructure such as markets.

In a statement issued on Tuesday, COTU noted that the Affordable Housing Regulations will introduce a loophole that could allow Members of Parliament to channel housing levy funds into projects that fall outside the core mandate of providing decent and affordable housing for Kenyan workers.

"Under the Affordable Housing Regulations, housing levy funds may now, erroneously, be used to construct health facilities, pre-primary education centres, basic education centers, fire stations, police posts, social halls, markets, and open spaces, under the guise of associated social infrastructure," read the statement in part.

Housing Principal Secretary Charles Hinga, however, now says COTU is misleading Kenyans — yet it was part of the team that drafted the law providing for both houses and supporting amenities.

“COTU was represented in person in committees that formulated this Act and regulations. Even in 2018, the Act clearly said — houses, plus social and physical infrastructure that make settlements work,” said the PS.

Hinga insists that affordable housing is not just four walls, but a package that must include markets, hospitals, and schools for ordinary Kenyans who can’t afford to travel far for services.

“People who live in these areas can’t afford transport. So, we can’t just build houses and leave them without amenities,” he added.

And with COTU accusing the government of misusing workers' contributions, Hinga reminded them it’s the same workers who will occupy those houses, visit the markets, and benefit from the facilities.

“COTU is saying workers’ money is being misused, but those markets will be visited by those very workers — and the markets will be run by county governments,” said Hinga.

It’s President William Ruto’s recent statement that fanned the flames, after he openly announced the housing levy would be used to build markets across the country — next to affordable housing projects.

“We are using the housing money to build 260 markets across the country,” the Head of State announced recently.

But with COTU digging in, and the government refusing to budge, resolving the disagreement may be key to achieving the aspirations.