Ruto defends Ksh73B housing levy amid accountability concerns
By Aloys Michael, January 23, 2026President William Ruto has scoffed at criticism over the housing levy, maintaining that the deductions are being prudently managed and are already delivering visible benefits to Kenyans.
This comes even as pressure continues to mount on the government over the accountability of the funds deducted from Kenyans’ pay slips amid tough economic times.
Speaking on Friday, January 23, 2026, during an address to graduate interns recruited under the affordable housing programme, Ruto brushed off concerns raised by sections of the public, defending the levy as a key driver of job creation and development.
“There is nothing we cannot do if we believe in ourselves and if we provide the right leadership. If I were a coward, this project could not have happened the way they threatened me with protests,” the Head of State said.
Earlier, the Auditor-General, Nancy Gathungu, questioned the use of Ksh19.6 billion meant for lending to prospective affordable homeowners, saying she cannot access records on the financing scheme.
She said she is unable to track the use of the loan issued by the World Bank’s International Bank for Reconstruction and Development (IBRD) to the Kenya Mortgage Refinance Company (KMRC).
Still, oversight gaps make it unclear how the money has been used.
Gathungu said she has been unable to verify loan repayments since the agreement was signed nearly seven years ago.
The plan was for KMRC to on-lend the funds to financial institutions, which would then issue loans to potential homeowners.
“Records provided for audit revealed that disbursements amounting to EUR 148,028,519 (Sh19,620,451,418) have been made to KMRC as at June 30, 2025, for on-lending to beneficiaries,” the report read in part.
However, according to Ruto, despite the clamour over the compulsory deductions, his strong leadership and faith in the country’s potential made the Affordable Housing programme a success.
The President has lauded salaried Kenyans contributing to the housing fund, calling them the true heroes of the programme’s success, and assured contributors that all housing levy deductions would be used strictly to build affordable houses, markets, and hostels.
Housing levy jitters
“I want to thank public servants and working Kenyans who contributed to the housing fund. They are the heroes of this programme; they are the ones who have made this programme what it is,” the Head of State affirmed.
“I want to tell them about every cent that they have contributed to the housing fund. I take full responsibility for it must be put to good use, and it must develop the houses, the markets, the hostels and the markets.”
The project introduced by the government through the Finance Act of 2023 was intended to construct affordable houses for lower-income Kenyans.
However, since its implementation, the levy has faced numerous criticisms and setbacks, including legal battles that forced the government to amend the Act.
Under the Finance Act 2023, the government deducts 1.5 per cent of an individual’s gross income to finance the programme. Since the law came into effect, housing-related contributions have shown steady growth.
In the 2024/2025 financial year, the Ruto administration raised Ksh73 billion, up from Ksh54 billion collected in the previous fiscal year.