Former MCAs yet to settle car and mortgage loans

VIHIGA, KENYA: Five former members of the county assembly in Vihiga County are struggling to settle their car loan and mortgage, five months after they failed to defend their seats.

The five owe the assembly between Sh200,000 and Sh800,000 each, which they are still negotiating on how best to settle, before they can benefit from their gratuity.

Assembly clerk Ambaka Kilinga said by the time the first assembly’s sittings came to an end, 90 per cent of the loan had been recovered, with only eight having not settled.

“We recovered from their salaries as much as we could, and some MCAs opted to use their gratuity in clearance of the loan. There was also a voluntary contributions savings which helped some MCAs to offset their loans,” Mr Kilinga said.   

The assembly was allocated Sh200 million to cater for the MCAs car loan and mortgage, but it had challenges recovering it due to lack of proper structures.    

Former clerk, Josphat Musambayi, who was ousted, had not guided the MCAs accordingly on how to clear their loans, and most MCAs only begun repaying after their second year.

Ambaka noted he is not expecting challenges in recovering the loans from the current MCAs because of the measures put in place.

“We have moved a step further to put in place security for the loans. Those MCAs who have bought property, they have co-owned them with the county assembly, so that in case they fail to pay, we can repossess the property,” Kilinga said.

He added, “We have given them approximately four and half years to repay the loans, and we have already started deducting them.”

He further noted they had insured the loans so that in case the MCAs fail to pay, the insurance companies can offset them.

The clerk said they have initiated the process to also make their staff benefit from the loans.