Ruto’s Gov’t Launches Housing Levy Shake-Up After Atwoli Deal >> Deposit Cut, Market Fund Refunds, and More

The Ruto administration has officially begun a major overhaul of the controversial Housing Levy, setting the stage for sweeping changes aimed at making homeownership more accessible and rebuilding public trust. 

This dramatic shift comes after a pivotal meeting between President William Ruto and COTU Secretary General Francis Atwoli, culminating in a series of urgent policy reforms. The changes were announced during a high-level engagement on Saturday, June 21, involving Housing Principal Secretary Charles Hinga and the National Assembly’s Housing Committee. 

One of the most anticipated reforms is the reduction of the required deposit for affordable homes, from 10% down to 5%. PS Hinga, while addressing the committee, urged Kenyans to seize this opportunity. 

“I hereby ask Kenyans to utilise this chance to become homeowners,” he stated, reinforcing the administration’s push for wider access to the housing programme. 

But not all MPs were convinced. Lawmakers raised sharp concerns over how funds have been used, with Emurua Dikirr MP Johana Ng’eno questioning the transparency of the fund flows. 

“You said that Park Road proceeds were used to build Homabay Affordable Houses; where will Homabay proceeds go?” asked Ng’eno. 

In response, PS Hinga clarified that the National Housing Corporation (NHC) was using Park Road proceeds for the Homabay projects, and the investment would be recovered once the Homabay houses are sold. 

Further scrutiny from MPs focused on the allocation process, quality of the finished houses, their maintenance, and the lack of clarity around regulations guiding the Affordable Housing Programme. 

Another significant breakthrough was the government’s decision to stop using Housing Levy funds for constructing markets, a practice that had drawn widespread criticism. In a rare move of fiscal responsibility, the state also committed to refund every shilling that had already been diverted for that purpose. 

“All funds that have already been used to construct markets under the Affordable Housing Programme will be refunded to the Affordable Housing Levy Fund,” a statement following the President-Atwoli meeting confirmed. 

With these bold steps, the government is hoping to reset the narrative around the Affordable Housing Agenda, turning it from a lightning rod for criticism into a platform for economic empowerment and social transformation. But questions around implementation, transparency, and trust still loom large. 

For now, the government has signaled its willingness to listen, reform, and act. Whether that will be enough to win over a skeptical public remains to be seen.