Kalonzo questions Ruto’s empowerment agenda, vows to scrap housing levy
Kalonzo alleged that campaigners had taken several items to voters, among them wheelbarrows, mattresses, gas and a boat.
Kalonzo alleged that campaigners had taken several items to voters, among them wheelbarrows, mattresses, gas and a boat.
The President challenged critics who have proposed ending the housing levy and stopping the construction of affordable homes, markets and hostels to explain what would happen to people currently employed through the projects
Housing Principal Secretary Charles Hinga said the 1.5 per cent levy generates roughly Sh6 billion every month, but the revenue is not enough to meet the cost of delivering the government’s annual construction target.
Despite the strong collections, the government did not fully meet its three-year target. Treasury had projected cumulative receipts of Sh212.78 billion, leaving actual collections Sh6.32 billion lower than expected, equivalent to a 2.97 per cent shortfall
The Office of the Controller of Budget is mandated to oversee the implementation of national and county government budgets by authorising withdrawals from public funds. It also prepares statutory reports, publicises its findings and investigates the use of public money either on its own initiative or following complaints from members of the public.
Members of Parliament raised concerns during House proceedings, saying a number of projects launched in their constituencies have failed to progress as expected despite continued collections under the Housing Levy.
Appearing before the National Assembly Committee on Finance and National Planning during public hearings on the Finance Bill, 2026, the Affordable Housing Fund Board defended the controversial housing levy, sought expanded enforcement powers for the Kenya Revenue Authority (KRA), and pushed back against proposed tax changes that it warned could sharply increase the cost of houses.
Speaking at the 13th World Urban Forum in Baku, Azerbaijan, Ruto said 8,000 housing keys had already been issued under the programme, while another 273,000 units were under construction across the country.
Housing PS Charles Hinga says delays in paying interns under the Affordable Housing Programme were caused by combining two payroll systems, exchequer and housing-levy. He assured interns would be paid by Thursday and said communication will improve.
Before releasing the funds, the company withheld Sh1 million, citing statutory obligations including PAYE, NSSF, the Social Health Insurance Fund, and the Housing Levy. This action sparked a new dispute, including contested execution steps and an attempt to attach company property to recover the deducted amounts.
Nyoro blamed the 1.5 per cent mandatory housing levy deducted from workers’ gross pay for reducing disposable income and lowering cash flow across the economy.
The agreement provides that levy funds will be used solely for physical and social infrastructure within affordable housing projects