All civil servants (including teachers) to benefit from long-term loans at 3% P.A

On 17th dec 2014, the Salaries and Remuneration Commission,SRC announced a car and Mortgage scheme for state officers and other public officers of the Government of Kenya.This scheme also covers teachers under TSC.

The car and Mortgage scheme whose aim is to motivate public officers ,shall benefit officers to purchase cars and access mortgage facilities.Its also aimed at attracting and retention of requisite skills in the public service.

All state officers who are currently not enjoying the benefits are eligible regardless of the terms of employment (permanent and Pensionable ,full time or part time).

Administration and implementation :

The scheme shall be implemented by the National treasury for the Executive arm & constitutional commissions and by the Individual institutions’ and agencies e.g. state corporations, commissions, county governments, ministries etc. for the other public officers.

The National treasury shall provide funds through the MTEF budget process

Requests for budgetary provisions, county budgets and agreements via financial institutions


State officers:

Mortgage :  From Kshs. 25,000,000 to 40,000,000 for a maximum repayment period of 20 years

Car loan :  Up to Ksh.10,000,000 for a maximum repayment period of 5 years

Other Public officers (grade A to U):

Mortgage :  From Kshs. 4,000,000 to 25,000,000 for a maximum repayment period of 20 years

Car loan :  Up to Ksh.5,000,000 for a maximum repayment period of 5 years

All loans shall be at a interest rate of 3% Per annum on reducing balance.

Another reason to smile for the workers is the fact that the loan can only be terminated in case of default,and  not by other reasons of leaving employment e.g on disciplinary grounds.

The scheme commences on the 1st jan 2015.

It going to be very interesting to watch bank’s reaction to this announcement bearing in mind that the Government workers make up a huge percentage of borrowers and the Kenya bankers reference rate (KBRR) which is set at 8.54%.

More information :




16 thoughts on “All civil servants (including teachers) to benefit from long-term loans at 3% P.A

  1. mine is not a comment but a question.
    i need to develop myself
    i am a civil servant, a medical doctor at lodwar Distrct hospital
    how quickest possible can i access this loan?
    where do i get the application documents?

Leave a Reply