Salaried workers will now be given priority in allocation of affordable housing units, a State House meeting has resolved.
The Wednesday meeting between President William Ruto and the Central Organisation of Trade Unions (Cotu) Secretary-General Francis Atwoli also agreed to reduce down-payment deposit from the current 10 per cent to 5 per cent, in a major win for would-be home owners.
Currently, those seeking to buy the units are required to deposit at least 10 per cent of the unit's purchase price. Cotu said the decision was arrived at to enhance affordability and access.
“All salaried workers will automatically be considered for allocation of housing units, excluding those eligible under the social class category,” Mr Atwoli said in a statement after the meeting.
Complete government affordable units in Bahati Sub-county, Nakuru County on June 11, 2025.
Photo credit: Boniface Mwangi | Nation
The meeting between Dr Ruto and Mr Atwoli was convened following a contested diversion of housing levy to finance the construction of markets, schools and other physical projects.
In the statement to newsrooms, Mr Atwoli said that President Ruto committed to immediately put on hold any further construction of markets funded by the housing levy. The levy will, however, be used to complete a total of 400 markets that are already under construction.
The meeting also resolved that all associated physical and social infrastructure will be constructed within affordable housing projects only. “In exceptional cases where an essential facility such as a school cannot be built within a project, the government may support a nearby facility,” said Mr Atwoli.
The Nation contacted State House spokesperson Hussein Mohammed to confirm the details of the meeting. Despite his promise to provide feedback, there was no response by the time of going to press.
The Makasembo Housing Project on May 29, 2025, marking a milestone in Kisumu’s affordable housing journey.
Photo credit: Alex Odhiambo | Nation
Mr Atwoli had fiercely protested against the government’s plans to alter regulations managing the fund to allow for its diversion to finance the construction of schools, markets, police posts and hospitals. The Cotu boss had claimed that such diversion was likely to open up loopholes for misappropriation of the fund.
Mr Atwoli said the State House meeting, which was also attended by his assistant secretary-general, Earnest Nadome, secured key commitments from President Ruto. Mr Nadome is also a director at the Affordable Housing Board.
In his Madaraka Day speech in Homa Bay County on June 1, Dr Ruto talked of proposed reforms to give contributors greater flexibility by allowing them to access affordable home loans. “I am pleased to announce today that we shall be proposing to Parliament a reform to the law that will allow any contributor to access an affordable home loan of up to Sh5 million at a single-digit interest rate, applicable toward any housing unit in the market.”
Part of the proposed reforms also sought to provide a leeway to divert the fund to finance other projects, other than the housing.
The regulations proposed to have the fund finance construction of health facilities, Early Childhood Development Education (ECDE) centres – which is a devolved function – classrooms in both primary and secondary schools, as well as markets.
Pangani affordable housing project in Nairobi.
Photo credit: File | Nation
The proposal further sought to have the fund finance the construction of fire stations, police posts and social halls.
“The board may develop the following associated social infrastructure in every affordable housing scheme; a health facility, a pre-primary educational institution, a basic education institution, a fire station, a police post, a social hall, a market, open spaces and infrastructure for the management of solid waste,” states the draft.
The President had earlier disclosed that the fund is also being used to complete ongoing markets, some of which were started in the Mwai Kibaki era and which are not part of the low-cost buildings project, raising a storm over the possible misuse of the money.
“We are not only using that housing levy kujenga hio affordable housing (to build those affordable houses). We are using it to build markets,” he said. "We now have 260 markets going on in Kenya. We have hostels that are about to begin now, so our young people in colleges will benefit. Our women and all the other market people will benefit.”
