On 17th dec 2014, the Salaries and Remuneration Commission,SRC announced a car and Mortgage scheme for state officers and other public officers of the Government of Kenya.This scheme also covers teachers under TSC.
The car and Mortgage scheme whose aim is to motivate public officers ,shall benefit officers to purchase cars and access mortgage facilities.Its also aimed at attracting and retention of requisite skills in the public service.
All state officers who are currently not enjoying the benefits are eligible regardless of the terms of employment (permanent and Pensionable ,full time or part time).
Administration and implementation :
The scheme shall be implemented by the National treasury for the Executive arm & constitutional commissions and by the Individual institutions’ and agencies e.g. state corporations, commissions, county governments, ministries etc. for the other public officers.
The National treasury shall provide funds through the MTEF budget process
Requests for budgetary provisions, county budgets and agreements via financial institutions
Amounts:
State officers:
Mortgage : From Kshs. 25,000,000 to 40,000,000 for a maximum repayment period of 20 years
Car loan : Up to Ksh.10,000,000 for a maximum repayment period of 5 years
Other Public officers (grade A to U):
Mortgage : From Kshs. 4,000,000 to 25,000,000 for a maximum repayment period of 20 years
Car loan : Up to Ksh.5,000,000 for a maximum repayment period of 5 years
All loans shall be at a interest rate of 3% Per annum on reducing balance.
Another reason to smile for the workers is the fact that the loan can only be terminated in case of default,and not by other reasons of leaving employment e.g on disciplinary grounds.
The scheme commences on the 1st jan 2015.
It going to be very interesting to watch bank’s reaction to this announcement bearing in mind that the Government workers make up a huge percentage of borrowers and the Kenya bankers reference rate (KBRR) which is set at 8.54%.
More information :
http://src.co.ke/images/press-releases/Circular%20on%20Mortgage.pdf
http://src.co.ke/media-center/news-press-releases/118-circular-on-mortgage
mine is not a comment but a question.
i need to develop myself
i am a civil servant, a medical doctor at lodwar Distrct hospital
how quickest possible can i access this loan?
where do i get the application documents?
Thanks for your question Francis,I will share the details ASAP.
How do you share the details. Via email or?
Has the scheme been implemented yet?where can one get help?
my job group is M
how much car loan and morgage can i access
Where and how can a teacher apply for the loans? What conditions must be fulfilled to get the loans?
where can i get loan for car for civil servants.
I am a teacher in job group L. How can apply for this car loan?
AM teacher in job group j how much am I eligible for a mortgage loan?
Hi am a teacher and i would like to apply for a mortgage. How do i go about it. Thanks
Am benson I would know where I can get the application forms
I understand that teachers are not eligible to the scheme. how true is that?
I AM A TEACHER AM I ELIGIBLE TO APPLY FOR DS LOAN?
has this project really commenced becoz the last time i checked it was still 5%
has this project/scheme started or is it still at 5%
Hi Esther,The rate is 3%.This is according to a circular by SRC.More details here : http://www.src.go.ke/index.php/resource-centre/advisory/circulars
Need more details on this,..