Politics and policy
State officers are offered mortgages of Sh20 million with an annual interest of three per cent. PHOTO | FILE
By EDWIN MUTAI
In Summary
- State officers are offered mortgages of Sh20 million with an annual interest of three per cent compared to the average lending rate of 18 per cent.
- The Sh20 million mortgage is for purchase of ready homes, financing buying of plots and constructing houses.
- The additional request signals that the top officers have exhausted the billions of the shillings they were allocated in the June budget.
State officers, including MPs, Cabinet secretaries
and judges, will get an additional Sh1 billion for home loans should
Parliament approve the Treasury’s mini-budget.
The officers, who also include the President and his
deputy, principal secretaries, magistrates, commissioners and
independent office holders, are offered mortgages of Sh20 million with
an annual interest of three per cent compared to the average lending
rate of 18 per cent.
The additional request signals that the top
officers have exhausted the billions of the shillings they were
allocated in the June budget.
Besides the concessional home loans, most of the
top officers’ pay exceeds Sh1 million as well as generous allowances
including meeting, travel and mileage claims in a country where nearly
half of its citizens live in poverty.
Currently, State officers under the Parliamentary
Service Commission (PSC) and the Judicial Service Commission (JSC) enjoy
mortgage loans of up to Sh20 million.
Each MP is entitled to a mortgage of Sh20 million and a car loan of Sh7 million payable by end of the term of Parliament.
In January 2012 the Judiciary unveiled a mortgage
plan that saw judges, magistrates and other employees of the Judiciary
benefit from a Sh20 million mortgage scheme each.
The scheme is part of efforts by the JSC to improve terms and conditions of service in the Judiciary.
The Sh20 million mortgage is for purchase of ready
homes, financing buying of plots and constructing houses. Under the
Judiciary mortgage loan plan, the maximum repayment period is 25 years
or the period remaining to retirement.
The Judiciary mortgage scheme is administered by the Kenya Commercial Bank and the interest applicable to the scheme is three per cent.
The additional Sh1 billion will also benefit MCAs,
governors, deputy governors, the Attorney-General, Director of Public
Prosecutions, commander of the Kenya Defence Forces and the Inspector
General of Police
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