Kenya: The Salaries and Remuneration Commission (SRC) has released car and mortgage loan schemes for different grades of State workers and other public officers.
The car loans range from Sh600,000 to Sh10 million and the mortgage loan between Sh4 million and Sh40 million.
The Attorney General, Cabinet secretaries, Auditor General, Chief of Defence Forces, secretary to the Cabinet and county governors are the main beneficiaries of this scheme as they are entitled to up to Sh10 million in car loans and Sh40 million for mortgages.
The interest rate applicable to these loans will be three per cent per annum on reducing balance for the duration of the loan.
In a circular signed by SRC Chairperson Sarah Serem, the scheme for State officers serving in the Executive and independent constitutional commissions will be administered and managed by the National Treasury.
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Each Government agency or organ will administer and manage the schemes internally and shall be subjected to an annual government audit.
County governments are also expected to set aside funds through their budget process to ensure implementation of the car loans and mortgage schemes for their employees.
DURATION OF SCHEME
Serem also said the scope of the scheme shall include all State officers and other public servants who are currently not enjoying these benefits and are employed on permanent and pensionable basis for public servants and State officers, who are either on full time or part-time basis.
The duration of the scheme shall be a maximum of 20 years for mortgage schemes and five years for car loans.
“Where a State officer or public officer leaves employment for whatever reason, other than disciplinary grounds, the terms of the loan remain in force and do not change for the life of the loan unless in cases of default, in which case it reverts to commercial terms,” said Serem.
