In a surprising turn of events, Francis Atwoli, the Secretary-General of the Central Organization of Trade Unions (COTU-K), has vocally endorsed President William Ruto’s Affordable Housing Project.
This project, which saw its operational phase commence in March, is predicated on the deduction of 1.5 per cent from workers' gross salaries, aiming to create half a million housing units by 2027. The initiative represents a significant move towards addressing Kenya’s acute housing shortage.
The revelation of Atwoli's support came during an interview on Jeff Koinange Live, Citizen TV, on Wednesday, April 10.
During the interview, Atwoli disclosed that a meeting between President Ruto and the country’s labour secretary generals had preceded the project’s rollout. “We asked him during Labour Day, please come and explain to us. We went to State House, and he met all the general secretaries,” Atwoli shared.
Atwoli, often a figure of controversy, put forth a robust defence of the housing levy pointing to the importance of labour organisations' involvement in the project's preliminary discussions and the consideration of their input as essential for the initiative's continuity.
His stance comes as a reassurance to many workers who have expressed concerns over the new deduction.
“If it reaches somewhere and our representative on the board says this is what's happening. Can we be able to resist either to look into it this way or that way, then we will, when we reach there, we'll have to look at it from that way. There's not everybody who can agree,” Atwoli elucidated, acknowledging the diversity of opinions that such a significant policy shift is bound to elicit.
The labour leader also pointed to the eradication of slums as a pressing reason for the levy. Drawing parallels with countries like Algeria that have embarked on similar ventures, Atwoli stressed the need for a master plan to eliminate slums, with representation on the project board being crucial.
However, President Ruto's Affordable Housing Plan is currently navigating through legal challenges.
A total of 22 Senators, alongside Senator Okiya Omtatah, have mounted a challenge against the project's legality. The controversy mainly surrounds the appointment of the Commissioner General of the Kenya Revenue Authority (KRA) as the levy's collector, a move that the petitioners argue exceeds the Commissioner-General’s statutory duties.
The legal petition, led by Busia Senator and activist Omtatah was filed on April 9, and seeks to invalidate the project in its entirety. The argument hinges on the premise that the Commissioner-General’s role does not traditionally include the collection of such levies, a responsibility thought to be within the broader KRA's remit.
Despite these legal entanglements, Atwoli regards the current situation as the project’s "teething problems", suggesting that initial resistance and challenges are to be expected with any ambitious national project.
The Affordable Housing Bill 2023, signed into law by President Ruto on March 19, not only reinstates the contentious housing levy deductions but also extends its reach to the informal sector.
This move aligns the legislation with a previous High Court ruling that deemed its predecessor unconstitutional.
