Governors back use of housing levy to build markets

The Council of Governors (CoG) has endorsed President William Ruto’s directive to use the affordable housing levy to fund not only the construction of homes but also essential public amenities such as markets.

CoG chair Ahmed Abdullahi, who is also the governor of Wajir, said the council supports a broader interpretation of the housing programme to include infrastructure that supports liveable and inclusive communities.

“The success and the sustainability of the affordable housing program depends 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 wellbeing in those areas where the houses have been put up,” said Abdullahi.

“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,” he added.

He explained that the governors held an extensive meeting with President Ruto last week, during which they agreed on the importance of including additional social amenities in the program.

The support by the governors comes in the wake of criticism from the Central Organisation of Trade Unions (COTU), which has warned that using the levy for projects beyond housing may be unlawful.

COTU Secretary-General Francis Atwoli cautioned that expanding the scope of the housing levy beyond its original legal mandate could lead to misuse, insisting the levy should be used strictly for building homes.

He argued that the Affordable Housing Regulations create loopholes that may allow Parliament to channel the funds toward projects unrelated to affordable housing, a move that could undermine the integrity of the programme.

However, the government has maintained that affordable housing goes beyond constructing homes and includes the development of integrated settlements where residents have easy access to essential public services.