COTU raises concern over possible misuse of housing levy
The Central Organization of Trade Unions (COTU) has sounded an alarm over what it terms a looming threat of misuse of the Affordable Housing Levy.
The Central Organization of Trade Unions (COTU) has sounded an alarm over what it terms a looming threat of misuse of the Affordable Housing Levy.
In a statement on Tuesday, June 3, COTU Secretary General Francis Atwoli expressed concern over new Affordable Housing Regulations adopted by the National Assembly, which he says open the door to potential diversion of the housing levy funds.
“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,” he said.
Atwoli cautioned that the proposed regulations would expand the use of housing levy funds to non-housing initiatives, a move he says betrays the original intent of the levy.
“Under the Affordable Housing Regulations, housing levy funds may now, erroneously, be used to construct health facilities, pre-primary education centers, basic education centers, 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,” he added.
Atwoli emphasized that COTU’s initial support for the Affordable Housing Programme was based on the promise of tangible housing outcomes for Kenyan workers.
However, he criticized the process that led to the adoption of the new regulations, pointing to a lack of consultation with workers represented by COTU.
“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.
“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. Without a doubt, no form of any form of meaningful public participation involving Kenyan workers through COTU (K) was conducted before the regulations were adopted by Parliament,” he noted.
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In response, COTU is calling for an immediate halt to the current regulatory process and the initiation of a new, participatory approach that fully includes worker representation.
“We strongly urge that the process surrounding these regulations be halted immediately, and a fresh, participatory process be initiated.
Workers, through COTU (K), must be included in the redrafting of these regulations to safeguard the purpose and integrity of the Affordable Housing Levy,” he stated.
While reiterating the union’s continued support for the Affordable Housing Programme, Atwoli made it clear that COTU would not stand by silently if workers’ funds are misdirected.
“COTU (K) reiterates its unwavering support for the Affordable Housing Programme, but we will not stand by and watch as our members’ contributions are diverted away from the primary purpose of providing them with homes.
“We call upon the President to intervene decisively to protect the rights of workers and ensure that the Affordable Housing Fund is used solely and strictly for its intended purpose,” he concluded.
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