The Nairobi County Government under the leadership of Governor Johnson Sakaja is expected to increase the funding for employees' car and mortgage loans.
In the 2024/25 budget estimates, the county has proposed increasing the funding from the current Ksh100 million to Ksh500 million. The funds shall be accessible to all eligible employees under Governor Sakaja's administration.
According to the documents published by the county, the previous Ksh100 million kitty only catered for five houses at Ksh5 million each.
"The sector will require an additional funding of Ksh500 million in the next FY 2024/2025 to provide our staff with car and mortgage loans, as the Ksh100 million will only cater for 20 houses Ksh5 million each," reads part of the estimates.
In the budget estimates, it was revealed that the County Assembly approved the regulations and is awaiting gazettement. The design of forms and the constitution of sub-committees is currently ongoing.
This scheme introduced in 2013 is part of the county's employee assistance program.
Other strategies the county aims to implement to improve worker morale include providing comprehensive medical cover, operationalising an affordable housing scheme, sensitising employees on mental health and work-life balance and forming joint county management, trade unions and pension scheme committees to clear debts.
Notably in July 2023, Charles Kerich, the Finance and Economic Affairs CEC tabled a proposal for the CEC to consider and propose the Nairobi City County Executive (State and Public Officers) Car Loan and Mortgage Scheme Fund Regulations 2023.
Per the regulations, employees entitled to the fund are members of the County Executive Committee, those on contract serving in the Executive arm of the County and serving as either County Secretary, Chief Officer or Member of the Public Service Board, and any employee on permanent and pensionable basis serving in the executive arm of the county.
Others to be considered include an officer employed on a contract basis by the executive arm of the county and an employee seconded by the National Government to public office in the county's executive.
All the employees will be required to meet the guidelines before making an application. If they are applying for a mortgage, the employees will need copies of the structural plans or designs of the proposed property including the area where it will situation, copies of identification documents and a certified copy of the title of the property to be purchased among other documents.
For a car loan, all applicants must provide certified copies of identification documents, a certified copy of the duly executed and stamped agreement for sale, a current copy of records from the Kenya Revenue Authority, and a certified copy of the log book of the car set to be purchased.
"All legal transactions in respect of the property being purchased shall be conducted by a duly licensed advocate selected from a panel of legal service providers approved by the committee," reads part of the regulations.
The regulations outline penalties, limits for loans, disbursement of loans, repayment and valuation of the car or property.
