Ward reps reject mortgage,car loan deal

12 Apr 2014

Some Trans Nzoia County Assembly members have rejected a car loan and mortgage deal secured betweenthe county government and a bank.

The dissatisfied ward representatives said the conditions placed by K-Rep bank for them to access Sh5 million loan each were unrealistic.

“The bank is conditioning us to produce a log book of a car which is not yet bought. They also want a title deed of a land where you intend to put up your house,” said Mr Simon Makhanu of Waitaluk Ward.

“The terms are so tough for us,” Mr Makhanu said and urged Governor Patrick Khaemba to seek alternative funding as the ward leaders would not accept to be treated “like lesser beings.”

The agreement, which was signed between K-Rep managing director Albert Ruturi and the governor last month, allows each ward representative to obtain a loan of Sh5 million repayable at a three per cent interest rate for the period that they are in office.

“We have taken this initiative as a county to ensure we comply with proposals approved by the Salaries and Remuneration Commission,” Mr Khaemba said.

Source: Daily Nation

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