The government has suspended the controversial utilisation of housing levy funds to construct markets across the country.

This follows a meeting between President William Ruto and Central Organisation of Trade Union (COTU)- Kenya Secretary General Francis Atwoli and other COTU officials. 

In a statement on Wednesday 18, Atwoli said the meeting agreed to establish a committee that will oversee the recovery of the housing levy funds from the already built-up market. 

“The Government has agreed to immediately put on hold any further construction of markets funded through the Affordable Housing Levy, save for the 400 markets,” the statement read in part.

It added: “A special committee will be constituted under the Affordable Housing Board, with representation from both national and county governments, to oversee the recovery and re-channelling of revenue from the construction of 400 markets back into the Affordable Housing Fund.”

This comes after the workers’ lobby earlier denied being consulted on the usage of the funds to build markets.

Atwoli had, a few days ago, raised concerns over the government’s proposal to include the construction of markets, police stations, primary schools, and social halls as part of the housing levy mandate. 

“But if let’s say the plot is small and cannot afford schools inside, the next immediate primary school which is around, it will be expanded by the money for service delivery to children of the people living in those particular houses,” Atwoli said.

According to the COTU boss, the meeting also agreed to ensure the proper use of funds for “Associated Infrastructure Within Housing Projects.”

The associated infrastructures, he noted, are all associated with physical and social infrastructure.

“In exceptional cases where an essential facility like a school cannot be built within a project, the Government may support a nearby facility to service delivery to the primary objective of the fund,” he said.

They also reached a consensus to prioritise the allocation of houses to salaried workers. 

“All salaried workers will automatically be considered for allocation of housing units, excluding those eligible under the social class category. Down-payment Deposit Reduced from 10 per cent to five per cent,” he said.