8 May 2008
editorial
Nairobi — As late as two decades ago, employment in the civil service was highly coveted.
Not only was job security more or less assured, but the work-load was not too demanding, and the pay, though not too exciting, was at least reasonable.
In the majority of cases, mid-level civil servants were either housed by the Government, or their housing heavily subsidised.
Now, with a few exceptions, the Government no longer houses civil servants - it can't afford to - and those few who are housed have to vacate the facilities soon after retirement.
It must, therefore, come as a great relief that soon, civil servants will be able to own houses through a mortgage scheme in which the Government, in partnership with the Kenya Commercial Bank, will provide mortgage facilities under easy repayment terms.
There will be multiple advantages in the deal. First, due to the relatively low interest rates - 5 per cent on a reducing balance - nearly every public servant can own a house within his or her means.
Secondly, this move will most likely lead to a housing boom in most towns, with all the attendant benefits like more jobs created in the building industry.
More people will abandon the over-priced hovels they had been forced to live in, and rapacious landlords may even be forced to reduce rent all round.
Thirdly, seasoned civil servants will no longer be so easily lured to the private sector where benefits, such as loans, may be easier to come by.
Now all that remains is for the Government to build or facilitate the building of more low-income houses, and the market will take care of the rest.
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