Housing PS Aidah Munano. PHOTO | FILE | NMG
Summary
- The State Officers House Mortgage Scheme Fund says only Sh575,600,856 was fully disbursed to 24 applicants in the year to June 2016.
- 150 State officers had handed in their application documents.
- The loans are repayable within 20 years or before the borrower attains the age of 70, whichever is earlier.
Only 24 State officials or top public
servants accessed the Sh2 billion State-sponsored mortgage scheme in its
first year of operations.
The State Officers House
Mortgage Scheme Fund says only Sh575,600,856 was fully disbursed to 24
applicants in the year to June 2016.
Housing PS Aidah
Munano, who is also the administrator of the scheme, said 65
applications were completed, returned with support documents and
recommended to bank for processing of loans with Sh1.742 billion.
She said 150 State officers had handed in their application documents.
The
Treasury allocated Sh2 billion to the fund for lending to State
officers and other public servants in the financial year 2015/16.
“Challenges
include regulations not covering purchase and improvement of the house,
purchase of plot for future development of residential house and
purchase of plot and construction of a residential house,” said Ms
Munano in a brief forwarding financial statement of the fund for the
year to June 2016 to Auditor-General Edward Ouko.
The
PS said the regulations governing the mortgage scheme do not cover the
takeover of an existing loan for a residential house and equity release
for purchase or development of a residential house.
“Other areas of consideration is the requirement for
unexpired lease term of at least 45 years, lack of comprehensive list of
State officers and termination of employment when the loan is being
processed,” she said.
The loans are repayable within 20 years or before the borrower attains the age of 70, whichever is earlier.
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