COTU denies role in drafting affordable housing regulations, demands proof from PS Hinga
On Friday, Hinga accused COTU of misleading the public, pointing out that the union was directly involved in the drafting of the law and its accompanying regulations, which explicitly provide for both housing units and supporting infrastructure.
The Central Organisation of Trade Unions (COTU) has denied government claims that it was involved in drafting the regulations for the affordable housing programme, including decisions on using levy funds for market construction.
This comes after Housing Principal Secretary Charles Hinga dismissed the concerns by the union that it is diverting billions of shillings from the affordable housing levy towards projects outside the housing sector.
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On Friday, Hinga accused COTU of misleading the public, pointing out that the union was directly involved in the drafting of the law and its accompanying regulations, which explicitly provide for both housing units and supporting infrastructure.
But in a statement on Saturday, COTU Secretary-General Francis Atwoli dismissed this, asking Hinga to provide evidence showing that the trade union was consulted or involved in the process of approving the Affordable Housing Act or its regulations.
“As COTU (K), we have never been consulted, either formally or informally, in the development, review, or approval of the current affordable housing regulations. In fact, at no point did the executive board of COTU (K), which is the legally mandated organ responsible for such organisational decisions, sit to deliberate or resolve to support the said regulations,” Atwoli said.
“If indeed PS Hinga claims that COTU (K) was involved, we challenge him to produce any written resolutions, minutes, or official correspondence from COTU (K)’s executive board endorsing the drafting or content of the current regulations. If anything, we have never received any communication from the Affordable Housing Board or from PS Hinga inviting COTU (K) to give their views on the regulations.”
Diverting housing levy
He further criticised the government, accusing it of diverting the affordable housing levy to fund the construction of other infrastructure such as markets, social halls, police stations, and health facilities.
“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,” Atwoli said.
He warned that expanding the use of the fund beyond housing undermines the levy’s core purpose and exposes workers to the risk of continued deductions without real benefits in terms of home ownership.
Atwoli reaffirmed that COTU’s representative on the Affordable Housing Fund Board, Ernest Nadome, could not legally speak or act on behalf of the union without a resolution by the executive board.
“Further, the claim by PS Hinga that Bro. Ernest Nadome, our representative on the Affordable Housing Fund Board, was involved in the drafting of the regulations is entirely misplaced considering the fact that Nadome’s role is clearly defined within the governance structure of the Fund and does not extend to making independent policy decisions on behalf of COTU (K),” he said.
“It is dangerous, and frankly dishonest, to equate the presence of one individual on a board to the institutional position of COTU (K). Furthermore, and for the record, Bro. Nadome has already informed the leadership of COTU (K) that, indeed and in fact, we, as COTU (K), were not consulted in the approval of the said regulations. The PS should, therefore, stop misleading the Kenyan workers.”
No consultations
Atwoli added that Nadome had already expressed agreement with a previous statement by COTU warning against the misuse of the housing levy and had confirmed that there was no consultation with the union over the regulations.
“As COTU (K), we are clear and unequivocal that there was no consultation because if there was any, we would never have agreed to the Affordable Housing Levy being used to build amenities and infrastructure that are already budgeted for within the National Budget. If this trend persists, the Affordable Housing Levy would soon be redirected to do other development projects like building roads, dams, and other heavy expense projects while leaving workers exposed without decent housing,” he said.
The union is now appealing to President William Ruto to intervene in the matter to ensure the funds remain strictly dedicated to housing.
“In light of this, we are calling upon His Excellency the President, Dr William Samoei Ruto, to urgently intervene and ensure that the Affordable Housing Levy remains for delivering decent, dignified, and affordable homes for Kenyans,” Atwoli said.
President Ruto recently revealed that part of the housing levy will be used to build 260 markets across the country, sparking the current debate. In his defence, PS Hinga maintained that COTU had participated in shaping the law that enabled such provisions.
“COTU was represented in person in committees that formulated this Act and regulations. Even in 2018, the Act clearly said, houses, plus social and physical infrastructure that make settlements work,” Hinga said.
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