CoG endorses use of housing levy for markets and infrastructure

Governors have endorsed President William Ruto’s plan to expand the scope of the affordable housing levy to include the construction of markets and other public amenities, in addition to homes.

Through the Council of Governors (CoG), the county chiefs said the housing programme must go beyond just building units and should also focus on creating full communities supported by proper infrastructure.

"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," said CoG chair Ahmed Abdullahi, who is also the governor of Wajir.

"Markets are an essential social infrastructure and they contribute to the economic well-being in those areas where the houses have been put up."

He emphasised that for the programme to benefit all Kenyans, physical and social infrastructure must be developed alongside housing.

"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," said Abdullahi.

He said governors held a meeting with the president last week, during which they discussed the need to align housing development with broader community needs.

He added that county governments believe housing settlements should be supported with all the basic facilities required to make them liveable and functional.

The support by governors adds weight to the government's push to make the programme more inclusive, coming at a time when questions are being asked about whether the housing levy should be used for purposes beyond building homes.

Last week, President Ruto defended the expanded use of the levy during a meeting with leaders from the Coast region held at State House.

"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.

The housing levy was introduced as part of the Affordable Housing Programme and involves a 1.5% deduction from an employee’s gross pay.

Employers are required to match the amount, bringing the total contribution to 3 per cent.

While the levy has attracted criticism in some quarters, the President maintains that the programme is already producing results, not only in housing but also in wider infrastructure development such as markets and student hostels.