June 24, 2024
Governor Sakaja Set To Spash Ksh500M On County Officials' Cars And Mortgages

Governor Sakaja Set To Spash Ksh500M On County Officials’ Cars And Mortgages

The Nairobi County Government, led by Governor Johnson Sakaja, is expected to increase funding for employee car loans and mortgages.

In its 2024/25 budget estimates, the county proposes increasing funding from Ksh100 million to Ksh500 million.

The funds will be made available to all eligible employees under Governor Sakaja’s administration.

According to county documents, the previous Ksh100 million budget only covered five houses worth Ksh5 million each.

“The sector will require an additional funding of Ksh500 million in the next FY 2024/2025 to provide our staff with car and mortgage loans, as the Ksh100 million will only cater for 20 houses Ksh5 million each,” reads part of the estimates.

According to the budget estimates, the County Assembly has approved the regulations and is awaiting gazettement. The design of forms and the formation of subcommittees are currently underway.

This scheme, implemented in 2013, is part of the county’s employee assistance program.

Other strategies that the county intends to implement to boost worker morale include providing comprehensive medical coverage, implementing an affordable housing scheme, educating employees about mental health and work-life balance, and forming joint county management, trade union, and pension scheme committees to resolve debts.

Notably, in July 2023, Charles Kerich, the Finance and Economic Affairs CEC, proposed that the CEC consider and propose the Nairobi City County Executive (State and Public Officers) Car Loan and Mortgage Scheme Fund Regulations 2023.

According to the regulations, employees eligible for the fund include members of the County Executive Committee, contract employees serving in the County’s Executive arm as County Secretary, Chief Officer, or Member of the Public Service Board, and permanent and pensionable employees serving in the county’s executive arm.

Other candidates to be considered include a county executive officer hired on a contract basis and a National Government employee seconded to public office in the county’s executive.

Before applying, all employees must first meet the guidelines.

If they are applying for a mortgage, the employees will need copies of the structural plans or designs of the proposed property, including the area where it will be located, copies of identification documents, and a certified copy of the title to the property to be purchased, among other things.

All applicants for a car loan must provide certified copies of their identification documents, a certified copy of the duly executed and stamped agreement for sale, a current copy of the Kenya Revenue Authority’s records, and a certified copy of the logbook for the car set to be purchased.

“All legal transactions in respect of the property being purchased shall be conducted by a duly licensed advocate selected from a panel of legal service providers approved by the committee,” reads part of the regulations.

The regulations outline penalties, loan limits, loan disbursement, loan repayment, and car or property valuation.

Governor Sakaja Set To Spash Ksh500M On County Officials’ Cars And Mortgages

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