William Ruto defends Kenya's Affordable Housing Levy

President William Ruto has defended the 1.5 per cent Affordable Housing Levy, arguing that the deduction is offset by a 10 per cent increase in the minimum wage implemented in June. Speaking in Eldoret, Ruto dismissed opposition calls to scrap the levy, stating that workers have not suffered a loss due to the recent wage hikes.

While the government has collected over Sh170 billion through the levy to date, critics point to a significant gap between revenue collection and housing delivery. Official data shows that while the government aims to complete 250,000 units annually, completed units in 2024 stood at 1,655, compared to 6,738 in 2025.

Experts suggest Kenya could look to international models, such as Rwanda’s rent-to-own system or Singapore’s individual account-based contributions, to address public skepticism regarding the current tax-to-build approach.