The opposition is urging Members of Parliament to reject proposed changes to housing levy regulations that would permit the diversion of collected funds to other government projects.

Speaking in Kilifi County, opposition leaders asked President William Ruto to ensure that the levy remains dedicated to its original goal — the construction of affordable housing units.

This latest opposition stance follows a strong objection by the Central Organization of Trade Unions (COTU), which was the first major institution to oppose the proposed amendments that would expand the levy’s mandate.

Opposition figures, led by former Deputy President Rigathi Gachagua, warned that amending the law to allow the levy to fund markets, schools, and other infrastructure would open the door to misuse of public funds.

Gachagua said the government was forcing Kenyans to contribute to a fund that is now being repurposed beyond its original scope.

“This housing levy was imposed on Kenyans,” Gachagua said. “People are being forced to pay, and now the money is being redirected to build markets and schools. It has become a conduit for theft. We are grateful that Atwoli has spoken out.”

The opposition also praised COTU for raising the alarm and insisted that any attempt to change the regulations could lead to the siphoning of public funds under the guise of development.

“You cannot force people to pay a housing tax only to use it for building markets,” said opposition leader Eugene Wamalwa. “We’ve now been told there are new regulations coming, and Atwoli has already raised concern. They are trying to change the purpose of this fund. We are appealing to our MPs to reject these moves, because this fund is being turned into a political slush fund.”

If adopted, the proposed regulations would allow the government to use the housing levy not only for housing, but also for the construction of health facilities, schools, police posts, social halls, markets, and open public spaces.