Governors back Ruto’s plan to use housing levy for building markets, social infrastructure

Governors have thrown their weight behind President William Ruto’s plan to use the affordable housing levy not only for constructing homes but also for building markets and other public amenities.

The Council of Governors (CoG), through its chair, Ahmed Abdullahi, said the housing programme must be expanded to include infrastructure that supports full and inclusive communities.

“The success and the sustainability of the affordable housing program depend not only on the construction of the housing units but also on the provision of adequate physical and social infrastructure to support these developments. Markets are an essential social infrastructure and they contribute to the economic well-being in those areas where the houses have been put up,” said Abdullahi, who is also the Wajir governor.

He added that proper infrastructure is critical to ensuring the housing programme benefits all Kenyans.

“Physical infrastructure such as roads, water and sanitation systems, electricity and drainage must be developed alongside the housing projects. Likewise, social infrastructure such as schools, healthcare facilities, markets, recreational spaces, as well as security installations, we believe are essential for fostering inclusive, safe and thriving communities,” the CoG boss said.

Governor Ahmed revealed that the council held a detailed meeting with the president last week, where they agreed on the importance of aligning housing with broader community needs.

He said the governors believe that affordable housing should include everything needed to make the settlements liveable.

The support from governors strengthens the government’s push to make the programme more holistic, coming at a time when questions have been raised about the scope and legality of how the housing levy is used.

Last week, President Ruto defended the government’s use of the housing levy, saying it is a transformative tool not just for affordable housing, but also for wider infrastructure development, including markets and student hostels.

“We are not only using the housing levy to construct affordable housing, but we are also using it to build the markets. We now have 260 markets going on in Kenya,” said the President during a meeting with Coast region leaders at State House.

The housing levy, which came into effect as part of the Affordable Housing Programme (AHP), deducts 1.5 per cent from an employee’s gross salary.

Employers match that with an equal 1.5 per cent contribution, bringing the total to 3 per cent. Though the levy has sparked public debate, the President insists its impact is already visible across the country.

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• Council of Governors
• Affordable Housing Programme
• Ahmed Abdullahi
• Governors back Ruto’s plan to use housing levy for building markets
• social infrastructure