The National Assembly has moved to make it easier for public officers to access motor car loans, approving a proposal that extends repayment periods and allows older vehicles under the scheme. The decision is aimed at increasing participation and ensuring the loan fund remains viable over time.
The National Treasury had flagged concerns that the existing five-year repayment term and eight-year vehicle age cap were discouraging officers from applying, limiting the effectiveness of the Public Service motor car loan scheme.
To address this, lawmakers approved regulations extending the repayment period to six years and permitting vehicles up to 10 years old.
The changes were endorsed by the Committee on Delegated Legislation, chaired by Ainabkoi MP Samuel Chepkong’a on Thursday, which also considered the regulations for the Wildlife Conservation Trust Fund.
The committee’s review is part of its mandate under the Statutory Instruments Act, 2013, which gives it authority to approve, reject, or propose amendments to regulations in the public interest.
Treasury Cabinet Secretary John Mbadi explained that uptake of the motor car loan scheme had been low, raising questions about its sustainability. “The amendment to the fund is very important as it affects many Kenyans. If we make accessing the fund restrictive as it is now, then it will defeat the very purpose of having it in the first place,” Chepkong’a added.
Under the new rules, loans can be repaid over 72 months instead of 60, and vehicles up to 10 years old can now qualify for purchase under the scheme. Committee members welcomed the adjustments, describing them as overdue given the pressures many public officers face in the current economy.
During the same session, CS Mbadi, accompanied by Wildlife Principal Secretary Silvia Museiya, briefed the committee on the Wildlife Conservation Trust Fund. He explained that the fund, created under the Wildlife Conservation and Management Act, finances programmes that protect wildlife, conserve ecosystems, support community projects, and provide grants for conservation activities.
Following discussions, the committee adopted both sets of regulations and will prepare a report for submission to the National Assembly for debate and final approval.