Inside the Ksh 4.3 bn pocketed by MPs for luxury homes and top-of-the-range vehicles

Parliament disbursed Sh4.3 billion to MPs to buy luxury homes and top-of-the-range vehicles through its mortgage and car loans scheme.

Data from the Parliamentary Service Commission (PSC) shows that 183 MPs and a number of staff members accessed the loans in the year to June 2018.

“The two schemes (mortgage and car loan) have, in the reported financial year 2017/18, disbursed mortgage loans totalling Sh3.55 billion and car loans of Sh664 million,” Naomi Shaban, chairperson of the Loans’ Management Committee, said in a brief forwarding the funds books of accounts to Auditor-General Edward Ouko.

The Salaries and Remuneration Commission (SRC) set the maximum loan entitlement for MPs at Sh35 million for mortgage and Sh7 million for car loan.

Speakers of both Houses are entitled to a maximum of Sh40 million while staff mortgage loan is caped at Sh30 million.

Mortgage advanced to MPs is recovered within their parliamentary term while staff until retirement.

Dr Shaban said the committee considered, approved and processed loans for 183 MPs and 34 staff members.

“The current parliamentary term has seen 183 members’ loans fully processed and paid during the year being 44 per cent of members with the target being 75 per cent,” she said.

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