MPs seek Sh7.8bn for mortgage, car loans and mileage

PSC chairman Justin Muturi (left) and secretary Jeremiah Nyegenye during a past event. FILE 

By EDWIN MUTAI, emutai@ke.nationmedia.com

In Summary

• PSC told the Budget and Appropriations Committee that the Sh1 billion provided for the home loans could only support 50 members.
• Each of the 416 MPs is entitled to a Sh20 million mortgage and Sh7 million car loan repayable before the expiry of the five-year term.
• There are 349 MPs and 67 Senators in the bicameral Parliament.

Members of Parliament are seeking Sh7.8 billion from the Treasury to finance their mortgage, car loans and mileage schemes.

The Parliamentary Service Commission (PSC) told the Budget and Appropriations Committee that the Sh1 billion provided for the home loans could only support 50 members.

“The impact of the supplementary budget as proposed by the Treasury will be heavy and negatively affect the implementation of most plans that had been outlined by the commission. The repayment period for the mortgage and car loan continues to shorten and this will have a toll on members,” PSC secretary Jeremiah Nyegenye said.

The committee is scrutinising the reallocation of the June 2013 budget as proposed in the supplementary budget.

The Treasury reallocated the budget following new expenditure demands of Sh121.5 billion. The mini budget is expected to be debated and approved by the House this week.

Each of the 416 MPs is entitled to a Sh20 million mortgage and Sh7 million car loan repayable before the expiry of the five-year term. There are 349 MPs and 67 Senators in the bicameral Parliament.

Mr Samuel Obudo, the director for finance and administration at PSC, said only 205 members (Senators and MPs) have accessed the mortgage loans.

He said the remaining 211 members will require Sh2.5 billion to access the facility in order to buy homes.

“The total amount that was required is Sh4.5 billion but the Treasury only allocated us Sh500 million in the current budget,” he told the committee.

Mr Obudo said PSC will need Sh2.5 billion to cater to the needs of 125 members until the end of the current financial year in June.

“The rest of the money will be factored in the 2014/15 budget because we project that by the start of the new financial year, we will have processed paperwork for the balance of the members (86),” he said.

On the car loan, Mr Obudo said Sh2.9 billion is required for all members.

“We were only given Sh200 million against a request of Sh700 million. Going by the applications that we have received, we can disburse Sh700 million between now and June subject to the availability of funds in the supplementary budget,” Mr Obudo said.

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The PSC is seeking Sh600 million for members’ mileage.