7 December 2017

Kenya: City MCAs Demand Mortgages and Car Loans Without Security

Nairobi County Assembly sessions were on Wednesday adjourned as MCAs demanded mortgages and car loans without security.

MCAs converged outside the chamber demanding to be told why they had been asked to surrender logbooks and title deeds in order to secure the loans.

Majority Leader Abdi Guyo said the MCAs wanted to get the loans and mortgages illegally.

Every ward rep is entitled to a Sh3 million mortgage and Sh2 million car loan in line with the Salaries and Remuneration Commission policy.

This means counties need to allocate more than Sh10 billion to cater for the nearly 2,250 MCAs.

Mr Guyo said the law demands that loans and mortgages approved by the Assembly must have security.

RULES ARE CLEAR

"If you go to a car dealer, just get the agreement and bring the logbook to the assembly. The same applies to a house. The rules are clear and we cannot bend the law," Mr Guyo said.

He denied that MCAs boycotted the assembly over the loan, saying the bell had been ringing several times but there was a lack of quorum, forcing the Speaker to adjourn sittings.

Millions in taxpayers' money will be used to pay former MCAs' defaulted car loans and mortgages issued without security.

Auditor-General Edward Ouko's report for the year ended June 30, 2016, shows that some assemblies violated the Public Financial Regulations by allowing MCAs to access car loans and mortgages, without providing logbooks and title deeds as security.

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