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Lawmakers to repay house and car loans in full by August 7

There were outstanding loans amounting to Sh213.1 million for both MPs and parliamentary staff. FILE PHOTO | NMG
There were outstanding loans amounting to Sh213.1 million for both MPs and parliamentary staff. FILE PHOTO | NMG 

MPs will repay their mortgage and car loans before the end of their term on August 7, the administrator of the two schemes has said.

Michael Sialai, the Clerk of the National Assembly said none of the 416 lawmakers will lose their luxurious, top of the range vehicles and palatial homes at the end of their term.

“I want to assure Kenyans that no funds will be lost because at the end of it (term), all loans will be recovered,” Mr Sialai told a two-day workshop for parliamentary journalists in Mombasa.

“Unlike in the past, we now know the calendar of Parliament and therefore able to project recoveries,” Mr Sialai said.

He said the issue of car loans arose from the Auditor-General Edward Ouko’s report for 2015/16 on the Parliamentary Mortgage Scheme and the Car Loans Scheme.

“Things have changed and loans have been repaid. Majority of MPs are almost finishing their loans since we scheduled the repayments to be completed at end of their terms,” he said in response to a story published by the Business Daily on Monday.

The story reported that nearly 100 MPs were under immense pressure to clear low-cost mortgage and car loans.

Mr Ouko said in an audit report on the Parliamentary Service Commission (PSC) Car Loans Scheme Fund for the year to June 2016 that there were outstanding loans amounting to Sh213.1 million for both MPs and parliamentary staff.

The lawmakers are entitled to a Sh20 million mortgage and a Sh7 million car loan that they are, however, required to repay on or before the end of parliamentary terms. 

The lawmakers are also entitled to a Sh5 million car grant, which they do not repay.

Through its Car Loan Scheme Fund, the PSC has asked MPs not to rely on their monthly payslip deductions to repay the money due, but to instead “make additional payments from other sources.”

“This will ensure early repayment and release of original logbooks to facilitate their discharge and transfer to the owners,” the Fund said in a report to Mr Ouko.

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