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Nakuru MCAs set to benefit from Sh390 million car loans and mortgage scheme

By Steve Mkawale | Published Tue, October 3rd 2017 at 07:25, Updated October 3rd 2017 at 07:34 GMT +3

NAKURU, KENYA: The county will spend more Sh390 million on MCAs' car loans and mortgages.

Each of the 78 MCAs will get at least Sh5 million to buy a car and a house under the county assembly car loans and mortgage scheme. 

The County Assembly Service Board has already invited bids from banks to finance and manage the scheme for both MCAs and county assembly staff.

The car and mortgage scheme is a revolving fund established in line with the Salaries and Remuneration Circular of February 3, 2014.

“The Assembly Service Board has already placed an advertisement in the media inviting banks to bid for management services for the loans," said a source at the county assembly.

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Speaker Joel Kairu said the process would follow regulations already in place to avoid any controversies.

“Yes, the board has advertised for those services in accordance with the law. The board will follow due process to get management services that will benefit both members and staff," said Mr Kairu, who chairs the board.

In the first assembly, the scheme faced controversy after one member sought the removal of the then Speaker Susan Kihika and Clerk to the Assembly Joseph Malinda over awarding of the tender.

Former nominated MCA Maggie Kiiru claimed the Sh370 million tender meant for houses and cars loans was irregularly awarded to a local financial institution.

The MCA also wanted the car loan and mortgage scheme declared illegal as the Speaker did not follow due process in awarding the tender to Family Bank.

According to her, Ms Kihika abused her powers by using the loans to win MCAs' support in order to defeat a planned impeachment motion against her.

"The process was flawed and there lay a risk of misusing public funds since no committee had been appointed to manage the funds. There was no tendering to pick the best bank to manage the Sh370 million kitty," said the MCA.

A report on how the county spent its collections shows only Sh803 million (15.8 per cent) was used on development as opposed to Sh4.29 billion (84.2 per cent) on the recurrent budget.