Irungu Nyakera calls for refund of housing levy deductions with 20% interest
By Kiprono Keileb, November 2, 2025Nairobi DCP Patron Irungu Nyakera has sparked debate after calling for a full refund of the housing levy deductions, with an additional 20 per cent interest, arguing that the controversial fund has left Kenyans financially strained.
In a statement shared on his X account on Sunday, November 2, 2025, Nyakera said that the housing levy has taken money from both workers and businesses, worsening the cost-of-living crisis for many families. He claimed that despite the heavy deductions, the returns have not matched the sacrifice of ordinary Kenyans.
“The housing levy has taken money from workers and businesses and left many struggling to make ends meet,” Nyakera said.
Citing government data, he revealed that about Ksh120 billion has already been collected and used to construct roughly 148,000 housing units.
“Government data shows that about KSh 120bn has been collected so far and used to build around 148,000 housing units. Each unit is valued between KSh 1.5m and KSh 2.5m, putting the total value of the projects between KSh 220bn and KSh 370bn, all built on public land,” he stated.
Nyakera said the houses and the land they occupy would be securitised to raise at least Ksh250 billion. From this, he said, Kenyans and businesses who contributed to the levy would be fully refunded the Ksh120 billion, plus 20 per cent interest, bringing the total payout to around Ksh144 billion.
The WANTAM Government will securitise these houses and the land they sit on to raise at least KSh 250bn. From this, every Kenyan and business that was deducted will be fully refunded the KSh 120bn plus 20% interest, bringing the total payout to about KSh 144bn,” he stated, adding that it will correct the mess and see the money returned.
“This will correct a serious injustice and return money to the people who earned it,” he added.
Nyakera’s plan also outlines the creation of a revolving social housing fund, where the balance of about Ksh100 billion would be used to improve informal settlements and construct affordable homes for low-income families.
“The rent from these houses will sustain the fund, ensuring housing for all without ever taxing Kenyans again,” he stated.
His remarks come at a time when the government’s affordable housing programme continues to face public scrutiny, with questions raised about transparency, fairness, and long-term sustainability.
Nyakera’s proposal, promising refunds, interest, and a sustainable housing model, has drawn widespread attention online, reigniting conversations about how Kenya’s public funds are managed and whether taxpayers will ever see a direct return from mandatory deductions.