Billions in government’s car loan fund go untapped as civil servants shun scheme
The committee heard that only Sh225 million of the Sh3.8 billion in the fund had been issued to beneficiaries by June 2023.
A government car loan scheme meant to benefit public servants has seen very little uptake, leaving more than Sh3 billion unused.
This was revealed in a meeting between the Special Funds Accounts Committee and officials from the State Officers and Public Officers Motor Car Loan Scheme Fund.
More To Read
- Govt to slash civil servants’ hardship allowances in policy overhaul, saving Sh6bn annually
- MPs probe deductions leaving civil servants with less than a third of their earnings
- PSC calls for withdrawal of Bill transferring its powers to Head of Public Service
- Civil servants face uncertain future as salary reviews put on hold amid harsh economic times
- Broken promises as administrative delays leave civil servants without health benefits
- Auditor General: 47,300 Government employees taking home less than legal salary limit
The committee heard that only Sh225 million of the Sh3.8 billion in the fund had been issued to beneficiaries by June 2023.
The committee chair and Mbooni MP Kivasu Nzioka raised concerns over the fund’s low performance, questioning why eligible officers were not applying for the loans and whether management was doing enough to raise awareness.
“What measures have management taken to ensure it delivers on its core business? And why has the management resorted to investing the funds in Treasury Bills to avoid keeping the money idle?” he asked.
Limited awareness
Acting Chief Executive Officer of the fund Edna Atisa said that limited awareness among public servants had slowed the uptake of the car loans. However, she said the situation had improved after sensitization campaigns.
“The Fund performance has since improved following aggressive sensitization campaigns. As of February 28, 2025, the Fund had processed and issued Loans amounting to Sh700,696,442,” she said.
Atisa added that the fund has rolled out a Strategic Plan aimed at boosting uptake. This includes automating services, sharing loan details through the Government Human Resource Information System (GHRIS), reviewing regulations, and lobbying the Salaries and Remuneration Commission (SRC) to increase loan limits.
The committee stressed the need for practical solutions to ensure public officers benefit from the fund, warning that leaving billions unused goes against the intention of the scheme.
Top Stories Today
