Broke MPs Risk Losing their Luxury Cars over Unpaid Loans

The Parliamentary Service Commission (PSC) has told nearly 100 members of parliament that they risk losing possession of their luxury cars as a recover for outstanding loans at the end of their tenure on August 7.

The MPs, who spent millions of shillings in the just concluded party nominations and are expecting to spend more in the upcoming campaigns, are under pressure from the PSC TO clear low-cost mortgage and car loans they got while in office.

One legislator is entitled to a Sh20 million mortgage and a further Sh7 million car loan that they are expected to repay before the end of their tenure.

Further, the 418 parliamentarians are entitled to a Sh5 million car grant, which they do not repay.

The public service commission, through its Car Loan Scheme Fund, urged the lawmakers not to solely rely on monthly deductions from their salaries to repay the loans but instead “make additional payments from other sources.”

“This will ensure early repayment and release of original logbooks to facilitate their discharge and transfer to the owners,” the fund says in a report to Auditor-General Edward Ouko.

According to the fund, there is an outstanding loans amounting to Sh213.1 million for both MPs and other parliamentary workers.

The legislators are now facing a seizure of their luxury vehicles if they fail to repay the loans they borrowed at the beginning of their term in office.

They are required to repay the loans on or before August 7.