Housing PS Charles Hinga has defended the move by the government to use the Housing Levy to construct markets.
Hinga, speaking at a media briefing on Friday, June 6, noted that the use of the funds to construct the markets was lawful.
He cited the Affordable Housing Act, which provides that the government can use the funds to construct other social and physical amenities apart from the houses.
"You can build houses, but if you are far away from social facilities such as schools, clinics, and workplaces, then you are not solving the problem," he stated.
"That is why in the act, it says it can be used for the construction of the affordable houses and associated social and physical infrastructure."
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Section 10 of the Affordable Housing Act reads, "The purpose of the Fund shall be to provide funds for the design, development, and maintenance of affordable housing, institutional housing, and associated social and physical infrastructure."

The response by Hinga came after COTU, through Francis Atwoli, raised concerns over the move by the government.
According to Atwoli, the construction of markets was not envisioned in the law.
"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," Atwoli detailed in his statement.
However, in response, Hinga called out COTU, adding that it was involved in crafting the law.
Hinga added that the markets were also helping the workers as they would be bringing services closer to their homes.
"The statement by COTU came as a surprise to us because COTU is one of the very few organizations that had the privilege of drafting the act and drafting the regulations," he stated.
The controversy over the construction of the markets emerged after President William Ruto announced that the billions collected through the levy were supporting government projects for markets.