Cotu secretary general defends housing levy

Says the three per cent housing levy is a great initiative towards building low-cost homes

In Summary
  • In a statement on Monday, Atwoli said he invited all union leaders and the President to have a social dialogue on various issues.
  • Last month, President William Ruto said civil servants will start contributing 3 per cent of their income to a Housing Fund.
Cotu secretary general Francis Atwoli during a consultative meeting between Cotu officials and President William Ruto at State House on February 14, 2023.
Cotu secretary general Francis Atwoli during a consultative meeting between Cotu officials and President William Ruto at State House on February 14, 2023. 
Image: PCS

The Central Organisation of Trade Unions secretary general Francis Atwoli has hit out at unions who are opposing the housing levy proposal.

In a statement on Monday, Atwoli said he invited all union leaders and the President to have a social dialogue on various issues including the three per cent housing fund levy.

He has termed it as regrettable that a constitutional right and an agreement between the government and workers is being politicized saying those who skipped the Labour Day celebrations are the ones complaining about the resolution of the meeting.

“Cotu (K) would like to encourage the trade unionists who skipped labour day celebrations and the meeting with the President to embrace social dialogue and stop politicizing serious matters,” Atwoli said.

“It must be noted that the three per cent housing levy is not a tax and that this is a great initiative towards building low-cost homes for Kenyans workers.” 

The Cotu boss said article 43 (b) of the Constitution instructs that every Kenyan has the right to accessible and adequate housing and reasonable standards of sanitation.

“The government has made it clear that they have already invested Sh5 billion into the housing fund and those who contribute to the housing fund and later wish to withdraw their contributions will have access to their savings with interest,” Atwoli said.

Last month, President William Ruto said civil servants will start contributing three per cent of their income to a Housing Fund.

He said this was part of a plan the State will soon introduce.

Ruto said the contribution will help civil servants purchase houses built under the Affordable Housing project.

"To enable many Kenyans to buy houses under the affordable housing project, we have a housing fund to which we want every Kenyan to contribute three per cent of their income. If you earn Sh10,000, 3 per cent is Sh300  every month goes towards the fund," Ruto said. 

Those that have come out to oppose the levy include teachers, water and sanitation unions and public servants.

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