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Economy

Sonko executive order gives MCAs Sh5m car, home loans with no security

Nairobi Governor Mike Sonko. FILE PHOTO | NMG
Nairobi Governor Mike Sonko. FILE PHOTO | NMG 

Nairobi Governor Mike Sonko has issued an executive order for MCAs to be given car loans and mortgages without having to provide security.

The governor in a statement directed the county assembly speaker to allow the MCAs access the loans using their payslips as collateral.

This will be a major boost for the members who have been at loggerheads with the county leadership over the allocation of Sh3 million for a mortgage and Sh2 million for a car loan under the scheme without surety.

Mr Sonko has also directed the release of Sh400 million to the Ward Development Fund Account to allow development spending at the ward level.

“Following the discussion, I hereby issue an executive order to the Nairobi City County Assembly to provide car loans and mortgages to Members of the County Assembly (MCAs) against their pay slips without furnishing any collateral. The individual members will be required to insure the loans given to them,” he said.

He added that the executive had also approved the car and mortgage facilities for MCAs, as per SRC guidelines.

Mr Sonko said that the MCAs raised concern over inability to access car loans and mortgages due to the requirement to provide log books and title deeds as security for the loans.

On Ward Development Fund, the members will also be required to ensure that there is public participation in their respective wards and quarterly evaluation of identified projects will be done to ensure they are completed timely and in cost-effective manner.

“I have issued an executive order to the Executive Committee member in charge of Roads and Finance and Planning to carry out an audit of all Ward Development Fund projects for immediate completion once certified,” said the governor.

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