Homa Bay: William Ruto Says Govt to Use Housing Levy Funds to Build University Hostels
- Government plans to expand housing levy use to fund student accommodation in universities and colleges
- President William Ruto said the deductions will continue despite growing public concern
- Construction of a 588-unit hostel was launched at Tom Mboya University as part of a national rollout
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TUKO.co.ke journalist Harry Ivan Mboto has over three years of experience reporting on politics and current affairs in Kenya
Homa Bay: The government says the housing levy deductions are here to stay, with even bigger plans for the funds.
Source: Facebook
Speaking at Tom Mboya University in Homa Bay on Wednesday, 11 August, President William Ruto acknowledged mounting concerns over the statutory contribution.
He, however, insisted it was central to the country’s development goals.
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The head of state assured Kenyans that the money would be used responsibly to deliver major projects across the country.
Will Housing Levy deductions continue?
While in the lakeside county, Ruto launched the construction of a 588-unit hostel at the Tom Mboya University Students' Village, expected to accommodate more than 2,000 students.
He said the project was part of a nationwide initiative under the housing fund programme, which will see similar facilities built in technical training colleges, medical training institutes, and universities.
“The plan being executed now is to accommodate 170,000 students in facilities under this first phase across the republic. Many people have been asking me about the housing levy and the housing fund. That is the transformation it will deliver. In addition to 160,000 housing units already built, we are also constructing 400 new markets in Kenya and now expanding into student accommodation.” Ruto said
Ruto explained that the levy, introduced under the Finance Act of 2023 to support affordable housing for low-income earners, has been expanded to fund wider infrastructure growth.
Why is government building hostels in universities?
This includes hostels within learning institutions and modern trading markets to boost economic activity.
The president expressed concern over the safety of university and college students living in insecure neighbourhoods far from their campuses.
He said the government intends to build hostels within institutions to create safe, focused learning environments.
“Many of our students live in dangerous places, including slums. We want to bring them back to campus, where they can focus on their studies without the risk of being mugged, assaulted, or exposed to other forms of insecurity,” Ruto said.
The Housing Levy has faced public criticism and legal challenges, leading to amendments in 2024.
Despite opposition, Ruto maintained that its success in housing development would be replicated in student accommodation and other projects aimed at improving living standards.
Source: Twitter
Is Housing Levy legal?
In November 2023, the High Court declared the levy unconstitutional. The decision followed a petition by Busia senator Okiya Omtatah challenging the legality of the levy.
A three-judge bench ruled that the amendment to the Employment Act lacked a proper legal framework and was irrational.
The judges also found that the levy discriminated against formal sector workers while exempting those in the informal sector.
However, in January 2024, the Court of Appeal allowed the government to keep collecting the levy while a legal challenge continued.
The ruling came from a three-judge bench led by Lady Justice Lydia Achode, which ordered that the status quo be maintained until the case was determined.
This decision followed an appeal by then Treasury CS Njuguna Ndung’u.
Proofreading by Asher Omondi, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
