Loans and Mortgage Fund Bill passed in Nyeri
13 February 2014, 13:41
Nyeri - Members of Nyeri county assembly are set to receive mortgages and car loans after they unanimously passed the Loans and Mortgage Fund Bill, 2013.
According to the Finance and Economic Committee chairman, Paul Ngiria who tabled the Bill in the assembly, the purpose of the fund is to enable loans and mortgages to be advanced to the MCAs as prescribed by the Salaries and Remunerations Commission (SRC).
The 47 MCAs are now entitled to a car loan and mortgage facility each.
“The MCAs shall each be entitled to a car loan and mortgage facility, with a maximum of KES 2 million loan for a car and KES 3 million for mortgage. The loans are payable at an interest of three percent per annum on a monthly reducing balance,” the Bill states.
The Bill further states that the loan together with the interest accrued shall be repayable within the legislative term of the MCA.
The assembly speaker, David Mwangi Mugo said after approval, the Bill was to be forwarded to the governor for his assent or referral for amendments.
The MCAs applauded the Bill stating that they cannot execute duties properly without better means of transport.
“Some members do not have vehicles and they are expected to crisscross their wards to deliver services. If they have vehicles, it will be easier for them to offer better services and on time,” said Baragu Mutahi of Mathari-Kiganjo ward.
However, a nominated member representing the disabled person, King’ori Kanyi opined that the fund should be a grant similar to the one given to members of the national assembly instead of a loan.
His counterpart, Wangechi Njithi said it was a favour to women pointing out that sometimes they leave the assembly at dusk and travel home alone using public vehicles thus putting their personal security at stake.
She said the MCAs will now be able to reach the constituents at the grassroots level with ease.
However, any member who appeases the fund management board to grant him a loan will be subjected to a fine of KES 500 000.
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