President William Ruto now says that he chose to retain the 1.5 per cent Affordable Housing Levy deductions because workers had already received a 10 per cent increase in the minimum wage.

🇰🇪 Breaking It Down

Ruto defended the housing levy on Saturday, August 29, arguing that the deduction should not be viewed separately from the wage increase for all workers introduced in June this year.

Speaking at Eldoret State Lodge in Uasin Gishu County, Ruto dismissed criticism of the Affordable Housing Programme and accused the opposition of misleading Kenyans.

“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.

📌 What You Need to Know

The Head of State was responding to criticism of the housing levy, which has become a major political issue as opposition leaders continue to call for the levy's scrapping.

The 10 per cent minimum wage increase took effect on June 26, 2026, following a gazette notice published by the Labour Ministry, with the pay hike coming after Ruto directed that the minimum wage for all workers be raised.

Ruto issued the directive on May 1, 2026, requiring the ministry to gazette new minimum wage rates and employers to comply with the revised rates for different worker categories.

During the event, he used the wage increase to defend the 1.5 per cent levy, arguing that workers should consider the additional earnings they received alongside 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 argued that millions of Kenyans without payslips also need to benefit from government programmes, including affordable housing and employment opportunities created through the project.

📰 Source: Kenyans.co.ke