Government Should Scrap 1.5% Housing Levy and Let Private Sector Lead – Dan Maanzo

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Makueni Senator Dan Maanzo has renewed criticism of the government’s Affordable Housing Levy, arguing that the deduction places an additional financial burden on millions of workers while the houses being developed may remain out of reach for many of those contributing to the programme.

Highlights

  • Maanzo wants the 1.5% housing levy removed from workers’ payslips.
  • He claimed more than six million workers are contributing to the programme.
  • The senator questioned whether ordinary Kenyans can afford the houses being built.
  • He called for greater involvement of private developers in the housing sector.
  • President William Ruto has defended the levy as part of his administration’s housing programme.

Main Story

Maanzo Challenges Housing Levy

Makueni Senator Dan Maanzo has criticised the government’s Affordable Housing Levy, saying the programme places an unnecessary financial burden on Kenyan workers.

Speaking during a local radio interview on Tuesday, September 15, 2026, Maanzo said the housing levy was one of the issues that had made him critical of President William Ruto’s administration.

The senator claimed that more than six million employed Kenyans were contributing to the housing programme through deductions from their salaries.

Senator Wants Levy Removed

Maanzo argued that the deduction should be eliminated, particularly because some of the workers contributing to the scheme may not have the financial capacity to purchase the homes being developed.

He said the levy adds a 1.5 per cent deduction to workers’ gross salaries, while employers contribute a similar amount.

The senator questioned the logic of asking workers to finance a housing programme whose eventual beneficiaries may not necessarily be able to afford the completed units.

Questions Over Affordability

A major concern raised by Maanzo was whether the government’s housing projects are genuinely accessible to ordinary Kenyans.

He questioned what would happen if the completed houses remain beyond the financial reach of the people the programme is intended to serve.

For Maanzo, the success of the housing programme should not only be measured by the number of units constructed but also by whether working Kenyans and low-income households can realistically acquire them.

Maanzo Backs Private Sector Involvement

The senator proposed a greater role for private developers in addressing Kenya’s housing shortage.

He argued that the private sector could contribute significantly to housing development, while government resources and programmes should focus on social housing and supporting Kenyans with the greatest need.

His position comes amid an ongoing national debate over how Kenya should finance and deliver affordable housing.

Ruto Defends the Levy

President William Ruto has previously defended the 1.5 per cent employee contribution, arguing that workers should consider the deduction alongside improvements in their earnings.

The President has maintained that the housing programme is part of his administration’s broader economic agenda and is intended to increase access to affordable homes while also creating employment opportunities within the construction sector.

The government has continued to present the housing programme as one of its flagship initiatives.

Bigger Debate Over Kenya’s Housing Model

Maanzo’s comments add to the wider political debate surrounding the Affordable Housing Levy, with questions continuing over financing, eligibility, affordability and the eventual ownership of the homes being constructed.

While the government maintains that the programme can help address Kenya’s housing deficit, critics continue to question whether the financial model places too much pressure on workers.

At the centre of the debate is a question that affects millions of Kenyans: Can a housing programme truly be considered affordable if the people financing it cannot afford the homes?

As the housing debate continues, Kenyans may ultimately judge the programme not by how many houses are built, but by how many ordinary families can actually afford to call them home.

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