Civil servants are now set to receive cheap car loans from as low as 3 per cent. this follows the publication of fresh regulations by the National Treasury cabinet secretary Mr. Henry Rotich unlocking Sh1 billion to finance a motor vehicle purchase scheme for civil servants.
Following this publication, the Treasury will now be able to establish the State Officers and Public Officers Car Loan Scheme Fund which will oversee the disbursement of the loans.
The fund will receive car loan applications from civil servants and process them according to set guidelines that prescribe the maximum amounts available for workers across the various cadres.
The regulations also provide for procurement of a financial institution that will disburse the car loans to civil servants once they are approved by the fund.
“The initial capital of the Fund shall be Sh1 billion appropriated by Parliament in the financial year 2014/15 and additional capital of the Fund shall be made in the subsequent financial years’ budgets,” Mr Rotich said.