In what is being hailed as a major victory for Kenyan workers, the Central Organization of Trade Unions (Kenya), COTU (K), has secured critical commitments from the government on the management and utilisation of the Affordable Housing Levy, following a high-level meeting between President William Ruto and COTU Secretary General Francis Atwoli.

During the consultative meeting on Wednesday, June 18, 2025, which also included COTU Assistant Secretary General and Affordable Housing Board Director Ernest Nadome, the two parties arrived at a series of landmark resolutions aimed at restoring trust and accountability in the housing fund, which has been the subject of growing concern among workers.

“The Government has agreed to immediately put on hold any further construction of markets funded through the Affordable Housing Levy,” COTU confirmed the statement on his official X account on Wednesday, June 18, 2025.

Signalling the first of several wins, Atwoli said the immediate suspension addresses widespread outrage over the alleged misdirection of housing funds for unrelated infrastructure projects.

Equally significant is the Government’s decision to refund all funds that were previously misapplied to construct markets.

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

Atwoli said the move is expected to restore financial discipline and ring-fence the fund for its intended purpose—building affordable homes for Kenyan workers.

He said the Government is committed to ensuring that physical and social infrastructure financed by the housing levy will henceforth be confined strictly to housing projects.

“Moving forward, all associated physical and social infrastructure will be constructed within affordable housing projects only,” COTU revealed, adding that, “in exceptional cases where an essential facility like a school cannot be built within a project, the Government may support a nearby facility to serve the housing project’s needs.”

Perhaps one of the most consequential developments for salaried workers is the Government’s agreement to give them top priority in housing allocations. “Salaried employees, who are contributors to the Housing Levy, will be given top priority in housing allocations,” the union stated.

 “All salaried workers will automatically be considered for allocation of housing units, excluding those eligible under the social class category.”

Recovery of funds?

For many Kenyan workers struggling to afford home ownership, the reduction of the initial deposit requirement will come as a welcome relief. The down-payment deposit for allocated units has been cut from 10 per cent to 5 per cent, a move that COTU described as “enhancing affordability and access” for contributors.

Additionally, a special committee will be established under the Affordable Housing Board to ensure the recovery of funds misused in constructing markets.

 “A special committee will be constituted under the Affordable Housing Board, with representation from both national and county governments, to oversee the recovery and rechanneling of funds from already constructed markets back into the Affordable Housing Fund,” the union said.

The resolutions come at a critical moment, as public scrutiny over the administration of the housing fund has intensified. Workers have increasingly demanded transparency, with many accusing the state of diverting money deducted from their salaries for purposes not aligned with the spirit of the Affordable Housing Programme.

Atwoli asserted that the strong stance by COTU and its ability to engage the highest office in the land has drawn praise from labour stakeholders, many of whom see the outcome as a turning point in worker-led advocacy.

“We thank the President for his openness to dialogue and for responding to the concerns of workers,” COTU read the statement.

 “COTU (K) appreciates the commitment by the Government to protect the interests of Kenyan workers, particularly regarding the allocation and construction of the Affordable Housing Levy.”

𝐂𝐎𝐓𝐔 (𝐊) 𝐒𝐞𝐜𝐮𝐫𝐞𝐬 𝐊𝐞𝐲 𝐂𝐨𝐦𝐦𝐢𝐭𝐦𝐞𝐧𝐭𝐬 𝐟𝐫𝐨𝐦 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐨𝐧 𝐭𝐡𝐞 𝐔𝐬𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐀𝐟𝐟𝐨𝐫𝐝𝐚𝐛𝐥𝐞 𝐇𝐨𝐮𝐬𝐢𝐧𝐠 𝐋𝐞𝐯𝐲

The Central Organization of Trade Unions, (Kenya), COTU (K), wishes to inform Kenyan workers and the general… pic.twitter.com/Et5ytDNRLH

— Francis Atwoli NOM (DZA), CBS, EBS, MBS. (@AtwoliDza) June 18, 2025