President William Ruto has defended the continued deduction of the 1.5 per cent Affordable Housing Levy, saying workers had already benefited from a 10 per cent increase in the minimum wage.
Ruto defended the levy on Saturday, August 29, arguing that the deduction should be considered alongside the wage increment implemented for workers in June 2026.
Speaking at Eldoret State Lodge in Uasin Gishu County, the President dismissed opposition to the Affordable Housing Programme and accused his critics of giving Kenyans misleading information.
“If you are told to give 1.5 per cent yet your salary has been raised by 10 per cent, what loss is there? You have not suffered any loss,” Ruto said.
The President was responding to growing criticism of the housing levy, which has emerged as a major political issue, with opposition leaders repeatedly demanding that the government scrap the deduction.
The 10 per cent minimum wage increase took effect on June 26, 2026, following a gazette notice issued by the Labour Ministry. The increase came after Ruto directed that minimum wages for workers across different categories be reviewed upwards.
Ruto issued the directive on May 1, 2026, instructing the Labour Ministry to gazette the new wage rates and requiring employers to implement the revised pay for various categories of workers.
At the Eldoret event, Ruto cited the wage increase as justification for retaining the 1.5 per cent housing levy, arguing that workers should take into account the additional income they received when considering the deduction.
“At least they are talking about those who have payslips; what about those who do not have payslips? Who will talk on their behalf?” he posed.
He further argued that millions of Kenyans who do not receive formal payslips also stand to benefit from government initiatives, including affordable housing and job opportunities generated through the programme.
“If you abolish the programme, where will you take the millions of youths working in the Affordable Housing Programme?” Ruto asked.
The Affordable Housing Levy was initially introduced in 2023 through the Finance Act, 2023. However, courts declared the levy unconstitutional before the government reintroduced it under the Affordable Housing Act, 2024.
Despite its reinstatement, the levy has remained controversial, with many Kenyans, particularly salaried workers, questioning deductions from their income for a housing programme they argue may not directly benefit them.
