New Twist in MCAs Car Grants Promise

The Controller of Budget (CoB) on Tuesday, February 23 issued a clarification over a memo that was leaked yesterday Monday, February 22 that was widely interpreted as rejecting the car grants promise issued to Members of the County Assemblies (MCAs).

In a press statement issued on Tuesday, CoB pointed out that it had not rejected the proposal but had only stated that the car grant must follow the required process before its issuance

“There are processes that must be followed to ensure that MCAs do not get into problems in terms of accounting for the grant,” read a statement by the Controller of Budget, Margaret Nyakang’o.

She also pointed out that there are enough funds to cater for the car grants.

President Uhuru Kenyatta speaks at the National Cargo Deconsolidation Centre, Nairobi on Wednesday, February 10, 2021

PSCU

The press statement issued on Tuesday had a significantly different tone from an internal memo Nyakang'o had written to the Salaries and Remuneration Commission (SRC) Chief Executive Officer Anne Gitau, seeking to stop the implementation of the car grant before resolving some issues.

Nyakang’o stated that most counties had budgeted for a car loan facility and not a car grant. According to her, this is implemented through legislation that is enacted to create a revolving fund.

The hurdle to this, she pointed out, is that these legislations do not provide for the issuance of a car grant. Further, she stated that most counties had merged the car loan facility into the revolving fund. 

"Some counties are operating one mortgage and car loan fund for the staff and members of the county assembly. It should be noted that in some counties, the kitty is not fully funded,” Nyakang'o stated.

She also pointed out that she had divided requests from county governments to release funds into two categories; an advisory on how to implement the conversion of the car grant loan facility into a grant and the withdrawals from the County Revenue Fund (CRF) to finance the same.

"The office of the CoB has received numerous requests from county governments on the implementation of the review of the car loan benefit to a transport facilitation benefit in form of a car grant for speakers and MCAs,” she stated.

She also sought clarification on how to convert the car loans into a car grant benefit with the SRC considering issues raised.

The National Treasury offices at Harambee Avenue, Nairobi

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