• About
  • Advertise
  • Privacy & Policy
  • Contact
Kenyan Business Feed
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business
No Result
View All Result
Kenyan Business Feed
No Result
View All Result
Home News

MCAs default on car and house loans

Kenyan Business Feed by Kenyan Business Feed
Share on FacebookShare on Twitter

[ad_1]

Table of Contents

Toggle
        • News
  • MCAs who lost seats in 2017 default on car, house loans
News

MCAs who lost seats in 2017 default on car, house loans

Tuesday, May 21, 2019 9:43


By DAVID MWERE

Cars on sale at Jamhuri grounds
Cars on sale at Jamhuri grounds in Nairobi. At least five county assemblies are on the verge of losing millions of shillings in unpaid car loans and mortgages advanced to their respective members who failed to capture their seats in the 2017 elections. PHOTO | EVANS HABIL | NATION MEDIA GROUP 

At least five county assemblies are on the verge of losing millions of shillings in unpaid car loans and mortgages advanced to their respective members who failed to capture their seats in the 2017 elections.

According to Auditor-General Edward Ouko’s report for the year ending June 30, 2018 and tabled in the Senate, the affected counties are Nairobi, Busia, Nyamira, Kiambu and Kwale.

Mr Ouko says the county assemblies advanced huge sums of money to MCAs without any form of security, contrary to the Public Finance Management (PFM) Act, thus putting taxpayers’ money at great risk in case of default.

In Nairobi, 10 MCAs received car loans way above the recommended amounts.

The audit revealed a variance of Sh12.7 million between the total amount of car loans issued to the MCAs and the values indicated in the valuation reports by the Automobile Association of Kenya.

“It is evident that the loans issued to the MCAs exceeded the value of their vehicles contrary to the Public Finance Management (Nairobi City County Assembly Car Loan and Mortgage Scheme Fund) Regulations 2017,” Mr Ouko says.

The former MCAs pocketed Sh12.7 million without proof of security.

They include Mr Abraham Njihia Sh3.1 million instead of Sh2.9 million, Mr Redson Otieno Sh2.8 million instead of Sh2.5 million, Mr Elijah Stazo Sh3 million instead of Sh1.5 million and Ms Beatrice Gakuru Sh2.8 million instead of Sh2.1 million.

The others are Mr Fuad Hussein Sh3.7 million instead of Sh1.6 million, Ms Eve Malenya Sh3 million instead of Sh1.6 million, Mr Lawrence Otieno Sh4.4 instead of Sh2.3 million, Mr Mark Mugambi Sh3.3 million instead of Sh1.3 million, Mr Charles Thuo Sh2.8 million instead of Sh1.3 million and Ms Grace Muthami Sh3.4 million instead of Sh2.4 million.

Nyamira assembly is also finding it tough to recover over Sh4 million loaned to the former MCAs after the expiry of their term of service.

The recovery, Mr Ouko warned, seemed to be “uncertain”, noting that the assembly failed to charge security for the loans.

The auditor also noted that the fund did not have a charge register and the securities provided, such as logbooks, were not charged as prescribed in the fund’s regulations or held jointly in the name of the fund and borrowers. This is risky as it will be impossible to dispose of the securities in case of default.

Meanwhile, about Sh78 million in car loans was dished out to 38 MCAs without the vehicles’ valuation reports, and about Sh100 million was given as housing loans without supporting documents contrary to the PFM Act.

Missing in the applications are copies of approved designs of the proposed residential property, bills of quantities, official search of title deeds to the property intended to be bought and copies of the properties’ sale agreement.

In Busia 11 MCAs accessed loans without providing security.

[ad_2]

Source link


Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]
Kenyan Business Feed

Kenyan Business Feed

Recommended.

Regulator rules out lower power bills, cites demand

Regulator rules out lower power bills, cites demand

June 11, 2019

Motorbikes for sale in Kenya: Dealers and prices ▷ Kenya News

May 14, 2019

Subscribe.

Trending.

Tourism CS Rebecca Miano on Tuesday convened coastal public-private stakeholders in Mombasa to accelerate Kenya’s MICE sector growth, announcing progress on re-establishing the Kenya National Convention Bureau and urging youth-led innovation in tourism.

Kenya Ramps Up MICE Sector Reforms as CS Miano Confirms Convention Bureau Revival

July 1, 2025
Safaricom’s SIG Forum empowers SMEs with branding insights from 3Verse Kenya, showcasing award-winning campaigns and inclusive business support.

Safaricom’s SIG Forum Empowers SMEs as 3Verse Kenya Shares Award-Winning Branding Strategies

June 23, 2025
Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

Co-op Bank Launches New Financial Solutions to Empower MSMEs in Kenya

June 23, 2025
Safaricom launches new credit solutions, Fuliza Biashara, Taasi Till, and Taasi Pochi—to expand MSME access to financing and boost financial inclusion.

Safaricom Unveils New Credit Solutions to Boost MSME Financing in Kenya

June 23, 2025
PLP and Safaricom Graduate 300 Youth in Push for Digital Talent Development Across Kenya

PLP and Safaricom Graduate 300 Youth to Boost Kenya’s Digital Talent Pipeline

June 23, 2025
Kenyan Business Feed

We focus on news, analysis, and reports about Kenyan business, covering sectors like agriculture, finance, tourism, and technology.

Categories

  • African
  • Agribusiness
  • Courts
  • Education
  • Health
  • Hospitality
  • Manufacturing
  • NetWorths
  • News
  • Reports & Analysis
  • World Business

Popular News

  • First look at the prison where El Chapo may live for the rest of his life

    First look at the prison where El Chapo may live for the rest of his life

    2157 shares
    Share 1040 Tweet 466
  • Sameer Africa CEO Sacked

    1803 shares
    Share 749 Tweet 439

Recent News

Kenya elected to the UN Tourism Executive Council for the 2025–2029 term, marking a diplomatic breakthrough that elevates its role in shaping global travel governance and sustainable tourism policy.

Nairobi Ascends to UN Tourism Executive Council After Strategic Bid Poised to Shape Global Industry Agenda

July 1, 2025
Tourism CS Rebecca Miano on Tuesday convened coastal public-private stakeholders in Mombasa to accelerate Kenya’s MICE sector growth, announcing progress on re-establishing the Kenya National Convention Bureau and urging youth-led innovation in tourism.

Kenya Ramps Up MICE Sector Reforms as CS Miano Confirms Convention Bureau Revival

July 1, 2025
  • Home
  • African
  • News
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF

No Result
View All Result
  • Home
  • African
  • News
    • Agribusiness
    • Courts
    • Hospitality
    • Manufacturing
  • Education
  • Health
  • Reports & Analysis
  • World Business

© 2025 KBF