Car grant payments to MPs now clear VAT Bill for passage

 

The 11th Parliament in session: MPs are set to receive car grants on Monday. FILE  NATION MEDIA GROUP

By EDWIN MUTAI

IN SUMMARY
Sh1.9 billion for vehicles, home loans approved in rush to push law raising tax on basic goods.
The House on Thursday circulated the requirements for the mortgage and car loan grants for MPs to familiarise themselves with before applying for the facilities.

MPs are entitled to Sh20 million mortgage loan, a Sh7 million car loan in addition and a Sh5 million car grant.
On Thursday, legislators refused to pass the Value Added Tax Bill and to take a one month break until their July salaries, allowances, mileage and money to purchase the cars were paid.

Members of Parliament will on Monday get more than Sh1 billion in grants for buying cars, paving the way for the passing of the controversial Value Added Tax Bill.

The House on Thursday circulated the requirements for the mortgage and car loan grants for MPs to familiarise themselves with before applying for the facilities.

Senior Deputy Clerk Michael Sialai said 45 MPs had applied for the mortgage and their applications approved. He said none of the 348 MPs has applied for the car loan.

“For mortgage, 45 applications have been received and all approved and no application has been received for car loan,” he said via SMS in response to our queries on the status of the controversial schemes.

MPs are entitled to Sh20 million mortgage loan, a Sh7 million car loan in addition and a Sh5 million car grant.

“Loan repayments are affected before proceeds are released to ensure sufficient net salary is available for recovery within the reminder of parliamentary term,” he said.

Suba MP John Mbadi had said 206 new members had not received the Sh5 million car grant, Sh1.03 billion in total, but Mr Sialai said the money would be released on Monday.

On Thursday, legislators refused to pass the Value Added Tax Bill and to take a one month break until their July salaries, allowances, mileage and money to purchase the cars were paid.

(Read: MPs shelve Bills, refuse to adjourn over salary delay)

The House runs a Parliamentary Car Loan (Members) Scheme Fund, which allows MPs to borrow money to purchase an extra car other than that provided through the Sh5 million grant.

The loan is recovered from a beneficiary’s salary within the remainder of the parliamentary term. The Parliamentary Car Loan and Approval Committee approves the applications.

Through the Sh20 million mortgage scheme, an MP can buy a house directly, transfer an existing mortgage or construct a residence.

For those opting to construct the applicant is assigned Sh8 million, or 40 per cent of the loan, to purchase land and the balance (Sh12 million) for development assuming the member exhausts the facility.

Payments for construction are channelled through a registered contractor in charge of the development.

Those buying houses directly are given 90 per cent of the purchase price in Nairobi and 80 per cent of the property value outside Nairobi.