COTU Secretary General Francis Atwoli has announced that the workers' union has reached an agreement with President William Ruto on the use of the Housing Levy.
In a statement dated Wednesday, June 18, Atwoli stated that the government had agreed to stop using the funds to construct markets across the country, following his recent concerns.
Additionally, he announced that the government would be refunding the Housing Levy funds that were used to construct the markets.
"Moving forward, all associated physical and social infrastructure will be constructed within affordable housing projects only," he wrote.
"In exceptional cases where an essential facility like a school cannot be built within a project, the government may support a nearby facility to deliver services to the primary objective of the fund."
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Further, he stated that the government will prioritize salaried employees, who are contributors to the Housing Levy, during housing allocations.
"All salaried workers will automatically be considered for allocation of housing units, excluding those eligible under the social class category," read the statement in part.
"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."
Atwoli also detailed that the government agreed to reduce the down payment of the deposit from 10 per cent and 5 per cent.
"To enhance affordability and access, the required deposit for those earmarked for allocation of housing units has been reduced from 10 per cent to 5 per cent of the unit’s purchase price.
The COTU boss had initially raised concerns over the use of the funds to build markets, which he claimed was contrary to the Affordable Housing Act.
However, in response, Housing PS Charles Hinga stated that the construction of markets using the levy was in accordance with the law.
"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," the PS 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."
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."
