Following a consultative meeting between President William Ruto and COTU Secretary General Francis Atwoli, the Central Organization of Trade Unions, COTU, which had previously denied being consulted on the levy’s expanded mandate, now says it has now reached an agreement with the government.
The government has agreed to right-size the market’s development programme to focus exclusively on the 400 planned markets and suspend any further developments. This restructuring will ensure that more funding is directed toward the construction of affordable housing units, in line with the primary purpose of the Levy.
In accordance with the objective of the fund, all associated physical and social infrastructure will be constructed in locations where affordable housing projects are situated.
In exceptional cases where essential facilities such as schools, clinics, or other public utilities cannot be developed, the government will instead upgrade or improve nearby facilities to ensure service delivery.
The government also agreed that priority will be given to all salaried workers who are contributors to the Affordable Housing Levy for allocation of affordable homes, excluding those eligible under the social housing category.
On top of that, the required deposit for the allocated housing units has been slashed from 10% to 5% of the unit’s purchase price to enhance affordability and access.
A special committee will be established under the Affordable Housing Board to oversee the implementation and right-sizing of the market’s development programme. The committee will also be tasked with ensuring that any revenues from market construction are rechanneled into affordable home delivery.
