Workers Win Key Concessions on Housing Fund After COTU-Government Deal
NAIROBI, Kenya – Central Organization of Trade Unions (COTU) Secretary General Francis Atwoli has announced a new agreement with the government that limits how funds from the Affordable Housing Levy can be used and slashes the required deposit for workers seeking homes.
The deal follows weeks of pressure from COTU over how levy funds were being spent. Union officials objected to the use of worker contributions on unrelated infrastructure like market stalls and roads, claiming the projects had moved forward without consultation.
After a meeting with President William Ruto at State House, Atwoli confirmed that the government will now tie all physical and social infrastructure development directly to affordable housing project sites. Only in limited cases will funds be redirected to nearby public facilities.
“Moving forward, all associated physical and social infrastructure will be constructed in locations where affordable housing projects are situated,” said Atwoli. “In exceptional cases where essential facilities such as schools or clinics cannot be developed, the government may instead upgrade or improve nearby ones to meet service needs.”
Workers to pay lower deposits for government houses
In a significant policy shift aimed at increasing access to housing, the government also agreed to reduce the required down payment for housing units from 10% to 5% of the purchase price for workers contributing to the fund.
“To enhance affordability and access, the required deposit for those allocated housing units has been lowered,” Atwoli announced.
The change is expected to ease the financial burden on low-income earners and make government-built homes more accessible to the very people funding the program.
New committee to oversee Housing fund spending
A new oversight committee will also be formed to ensure transparency in the management of the fund. Atwoli said the body will monitor reallocation of funds and guarantee that any revenue generated from non-housing projects such as market stalls will be reinvested in the housing agenda.
“This is a clear step toward transparency and protecting worker contributions,” he said. “COTU appreciates the government’s continued commitment to safeguard the interests of Kenyan workers.”
Atwoli also praised President Ruto for responding to concerns raised by the union and called the outcome a win for accountability.
“We particularly commend President William Ruto for his willingness to engage, listen, and act,” said Atwoli. “This reinforces the central role of workers in national development.”
The Affordable Housing Levy, introduced as part of the government’s housing agenda, requires employed Kenyans to contribute a portion of their income to fund public housing. The policy has faced legal and political challenges, with critics questioning its implementation and oversight. The new agreement is expected to ease tensions and refocus the program on its core purpose: building homes for Kenyans.
