90 Percent Of County Assemblies Have Converted Car Loans Into Grants – MCAs

Members of the County Assembly (MCAs) have already converted the controversial Sh2 million car loan into grants.

The ward reps have as such deemed Controller of Budget’s (CoB) call for an advisory from the Salaries and Remuneration Commission (SRC), an exercise in futility.

County Assemblies Forum chairman Wahome Ndegwa while speaking to the Star, said 90 percent of the 47 assemblies have implemented the directive.

In February, the CoB sought an advisory on how to convert a car loan facility into a grant and how to handle requests to authorize withdrawals from county revenue funds to finance the grant.

“Some counties are operating one mortgage and one car loan fund for the staff and members of the county assembly. It should be noted that in some counties, the fund is not fully funded,” the letter read.

Read: Controller of Budget Seeks Guidance on MCAs’ Car Grants

Ndegwa who has since been impeached said the ward reps have been servicing the loans and what remains is converting it into a grant.

“Remember we had already issued loans to our members. We already created the fund and we are merely converting that fund from a loan to a grant. We paid our members what they had to repay in terms of loans and stopped deducting any further monies on car loans,” he said.

On February 9, SRC wrote to the Council of Governors approving the Sh4.5 billion car grants for MCAs and speakers. Apparently, the conversion would come at no extra cost.

Only current speakers and MCAs will benefit from the directive.

SRC is yet to give a way forward on the issues raised by the CoB.

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