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Key concessions Cotu has secured on use of housing levy

Going forward, only infrastructure within affordable housing projects will be funded

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by STAR REPORTER

News18 June 2025 - 18:00
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In Summary


  • Among the resolutions was the immediate suspension of market construction using the housing levy funds.
  • The government also agreed to refund all misapplied funds previously spent on such markets.

Cotu Secretary General Francis Atwoli with President William Ruto./PCS


The Central Organization of Trade Unions (Kenya) has announced major resolutions with the government on the administration of the Affordable Housing Levy.

In a statement issued on June 18, 2025, Cotu Secretary General Dr. Francis Atwoli said the agreements followed a high-level meeting with President William Ruto.

Dr. Atwoli was accompanied by Assistant Secretary General and Affordable Housing Board Director, Ernest Nadome.

The meeting addressed critical concerns raised by Kenyan workers over the use of the levy.

Among the resolutions was the immediate suspension of market construction using the housing levy funds.

The government also agreed to refund all misapplied funds previously spent on such markets.

“All funds that have already been used to construct markets under the Affordable Housing Programme will be refunded,” the statement said.

Going forward, only infrastructure within affordable housing projects will be funded. In rare cases, nearby facilities like schools may be supported if necessary.

Cotu also secured a commitment for priority housing allocation to salaried workers. Contributors to the levy will automatically qualify, except those eligible for social housing.

To make homes more accessible, the required down-payment was reduced from 10% to 5% of the unit's price.

The government will also form a special committee to oversee the recovery of funds used for already built markets.

This committee will include members from both national and county governments. Cotu welcomed the government’s response and thanked the president for his openness to dialogue.

“We appreciate the commitment by the government to protect the interests of Kenyan workers, particularly regarding the allocation and construction of the Affordable Housing Levy,” said Dr. Atwoli

"We thank the President for his openness to dialogue and for responding to the concerns of workers."

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