A new set of regulations recently adopted by MPs could be misused to redirect housing levy funds to other projects outside the Affordable Housing programme, it has now emerged.
Central Organisation of Trade Unions (Cotu-Kenya) Secretary General Francis Atwoli on Tuesday, June 3, warned that the new regulations could potentially introduce a loophole that could see lawmakers channel the funds into projects that could compromise the affordable housing plan.
Atwoli noted that the regulations that were adopted by MPs but had not yet been ratified by the Attorney General, could potentially subject the housing levy to misuses.
“Under the Affordable Housing Regulations, housing levy funds may now, erroneously, be used to construct health facilities, pre-primary education centres, basic education centres, fire stations, police posts, social halls, markets, and open spaces, under the guise of 'associated social infrastructure," reads Atwoli's statement.
“While these are all important public services, they fall well outside the scope of what Kenyan workers were promised when this levy was introduced,” it added.
Atwoli said Cotu members, who, despite expressing their support for the Affordable Housing programme, were not consulted in the development of the new regulations.
“Unfortunately, at no point were the Kenyan workers represented by Cotu (K), who form 90 per cent of the contributors, nor their representative on the board were consulted during the drafting of these regulations,” Atwoli said.
Consequently, Cotu called for an immediate end to the process and for fresh discussions on the exercise to be held, involving all Cotu workers.
“We strongly urge that the process surrounding these regulations be halted immediately, and a fresh, participatory process be initiated,” they said.
The latest comes as President William Ruto is currently aggressively pushing the Affordable Housing project countrywide. Recently, Ruto launched the Mukuru Affordable Housing units, handing over keys to over 1,000 new homeowners.
Just today, Ruto directed that 20 per cent of the government-constructed affordable housing units be given to the disciplined forces, including the Kenya Defence Forces and the police.
Speaking during a public address, Ruto said the allocation would be ringfenced to ensure that members of the security sector benefit directly from state-backed housing projects.
