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Loans, Mortgages for Civil Servants
Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Bigchick wrote:washiku wrote:nakujua wrote:now if a civil servant was to be fired, does the rate still apply when repaying.
lakini those rates sound cool Quote:“Whereas a state officer or public officer leaves employment for whatever reason other than disciplinary grounds, the terms of the loan remain in force and don’t change for the life of the loan unless in cases of default in which case it reverts to commercial terms,” said Mrs Serem. Sasa hiyo ni poa. Unaingia, unapata mortgage @3%, unachomoka for better pay somewhere else. Not that easy Washiku. What happens is that there are rules and guidelines for the same which will dictate what happens when you chomoka. The 3%interest loans are offered in collaboration with banks.The banks do tge due diligence and all that appartains to the loan. The government on the other hand gives out the cash/fund which is placed in a non interest bearing account to cushion the bank in case of default and facilitate the low interest charge. The main concern here is that the payslip may not enable one to borrow certain amounts and also I am not sure we have the number of houses to be purchased in the counties. Take a county like Kisii with about 5000 employees...wapi 5000 houses ready for sale.Not sure if the fund caters for construction mortgages. And therein lies a huge opportunity to partner with county governments to develop houses for sale. IOUN,Why does Kisii county with a budget for Kshs 7 require 5,000 workers? what are they doing?With that number of employees,I would expect to see more cleaners and clean streets of kisii or they are employed to work from offices? If Obiero did it, Who Am I?
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Rank: Elder Joined: 12/17/2009 Posts: 3,583 Location: Kenya
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Swenani wrote:nakujua wrote:Ngong wrote:nakujua wrote:washiku wrote:nakujua wrote:now if a civil servant was to be fired, does the rate still apply when repaying.
lakini those rates sound cool Quote:“Whereas a state officer or public officer leaves employment for whatever reason other than disciplinary grounds, the terms of the loan remain in force and don’t change for the life of the loan unless in cases of default in which case it reverts to commercial terms,” said Mrs Serem. Sasa hiyo ni poa. Unaingia, unapata mortgage @3%, unachomoka for better pay somewhere else. I am very tempted, sijui the details, but at 3% that must be lower kuliko inflation - sasa how does one get into the civil service and where are the jobs advertised. Ghost workers don't need to apply! mimi si ghost worker, infact sina kazi I am in the process of trying to get one, and the civil service seems like an interesting place to work, only that sijui where the jobs are posted and the process of getting a job huko, kama unajua saidia  1.This is wherethe jobs are posted2.I do not know the process,But I think it usually involves knowing someone who knows someone who might be able to know someone who makes the hiring decision on behalf of PSC and the parent ministry or being politically connected this will be a long journey that psc site haina job opening, hata moja - and if with all the movement, retirement, deaths in the civil service hakuna hata a single opening then inaka sita make hapa.
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Rank: Elder Joined: 12/17/2009 Posts: 3,583 Location: Kenya
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Bigchick wrote:washiku wrote:nakujua wrote:now if a civil servant was to be fired, does the rate still apply when repaying.
lakini those rates sound cool Quote:“Whereas a state officer or public officer leaves employment for whatever reason other than disciplinary grounds, the terms of the loan remain in force and don’t change for the life of the loan unless in cases of default in which case it reverts to commercial terms,” said Mrs Serem. Sasa hiyo ni poa. Unaingia, unapata mortgage @3%, unachomoka for better pay somewhere else. Not that easy Washiku. What happens is that there are rules and guidelines for the same which will dictate what happens when you chomoka. The 3%interest loans are offered in collaboration with banks.The banks do tge due diligence and all that appartains to the loan. The government on the other hand gives out the cash/fund which is placed in a non interest bearing account to cushion the bank in case of default and facilitate the low interest charge. The main concern here is that the payslip may not enable one to borrow certain amounts and also I am not sure we have the number of houses to be purchased in the counties. Take a county like Kisii with about 5000 employees...wapi 5000 houses ready for sale.Not sure if the fund caters for construction mortgages. And therein lies a huge opportunity to partner with county governments to develop houses for sale. someone quoted hapo juu that when you chomoka the rates still apply as long as you do not default - which is a good thing. I think any pay slip can borrow cash for a house, shida ni our notion of a house to buy is too clouded by the stone house idea - a decent sized 3 bedroom + garage matope house can fit a bill of between 50 - 100k, an amount I think any civil servant can get a house loan on. lakini hapa ni kenya if one travels to ushago and parks their landrover outside their mud walled thatched hut, people will think they are stupid.
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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nakujua wrote:Swenani wrote:nakujua wrote:Ngong wrote:nakujua wrote:washiku wrote:nakujua wrote:now if a civil servant was to be fired, does the rate still apply when repaying.
lakini those rates sound cool Quote:“Whereas a state officer or public officer leaves employment for whatever reason other than disciplinary grounds, the terms of the loan remain in force and don’t change for the life of the loan unless in cases of default in which case it reverts to commercial terms,” said Mrs Serem. Sasa hiyo ni poa. Unaingia, unapata mortgage @3%, unachomoka for better pay somewhere else. I am very tempted, sijui the details, but at 3% that must be lower kuliko inflation - sasa how does one get into the civil service and where are the jobs advertised. Ghost workers don't need to apply! mimi si ghost worker, infact sina kazi I am in the process of trying to get one, and the civil service seems like an interesting place to work, only that sijui where the jobs are posted and the process of getting a job huko, kama unajua saidia 1.This is wherethe jobs are posted2.I do not know the process,But I think it usually involves knowing someone who knows someone who might be able to know someone who makes the hiring decision on behalf of PSC and the parent ministry or being politically connected this will be a long journey that psc site haina job opening, hata moja - and if with all the movement, retirement, deaths in the civil service hakuna hata a single opening then inaka sita make hapa. You can vie for a political seat in the next election, and since I'm sure that you are sure you wont win, you might be appointed as the Kenyan Ambassador to the Islamic state of Iraq and Levant If Obiero did it, Who Am I?
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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Pay blocks most civil servants from car and Mortagage loansQuote:Thousands of civil servants in job groups A, B, C and D who earn an average of between Sh11,420 and Sh15,670 per month are technically locked out of the car loan scheme that promises workers between Sh600,000 and Sh10 million in five years.
A car loan of 600,000 will require a monthly deduction of Sh10,781 over the five years that the SRC has specified. Those below job group M, which has an average consolidated monthly pay of Sh75,000, will not be able to access the 20-year mortgage scheme assuming the Central Bank of Kenya average mortgage size of Sh6.4 million that requires a monthly repayment of Sh35,000 based on the annual interest of three per cent.
Though the government scheme provides mortgages of less than Sh4 million, civil servants in job group H, whose average pay is Sh28, 000, would struggle to access a home loan of Sh3 million that will demand a monthly repayment of Sh17,000. Quote:The interest on both the car and mortgage schemes is three per cent per annum on reducing balance— a favourable term given commercial bank loans currently average 18 per cent. Can this scheme lead to a drop in interest rates charged by commercial bank?If Obiero did it, Who Am I?
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Rank: New-farer Joined: 3/10/2014 Posts: 78
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nakujua wrote:Bigchick wrote:washiku wrote:nakujua wrote:now if a civil servant was to be fired, does the rate still apply when repaying.
lakini those rates sound cool Quote:“Whereas a state officer or public officer leaves employment for whatever reason other than disciplinary grounds, the terms of the loan remain in force and don’t change for the life of the loan unless in cases of default in which case it reverts to commercial terms,” said Mrs Serem. Sasa hiyo ni poa. Unaingia, unapata mortgage @3%, unachomoka for better pay somewhere else. Not that easy Washiku. What happens is that there are rules and guidelines for the same which will dictate what happens when you chomoka. The 3%interest loans are offered in collaboration with banks.The banks do tge due diligence and all that appartains to the loan. The government on the other hand gives out the cash/fund which is placed in a non interest bearing account to cushion the bank in case of default and facilitate the low interest charge. The main concern here is that the payslip may not enable one to borrow certain amounts and also I am not sure we have the number of houses to be purchased in the counties. Take a county like Kisii with about 5000 employees...wapi 5000 houses ready for sale.Not sure if the fund caters for construction mortgages. And therein lies a huge opportunity to partner with county governments to develop houses for sale. someone quoted hapo juu that when you chomoka the rates still apply as long as you do not default - which is a good thing. I think any pay slip can borrow cash for a house, shida ni our notion of a house to buy is too clouded by the stone house idea - a decent sized 3 bedroom + garage matope house can fit a bill of between 50 - 100k, an amount I think any civil servant can get a house loan on. lakini hapa ni kenya if one travels to ushago and parks their landrover outside their mud walled thatched hut, people will think they are stupid. The truth is majority of civil servants are poorly paid! The majority of beneficiaries will be the top few layers just below the PS. You will be surprised what senior managers in the government take home compared to a senior supervisor in the private sector. But with seniority in government comes power or frustrations depending on your ethics, morals and people whom you work with. Find out and you will realise that most people who buy roasted maize yote mzima hapo kwa stage jioni when leaving work are civil servants.
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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 If we make the assumption that the job security for the governor and CS,PS etc is limited to 5 years and assuming that the loan attracts 0% interest how on a earth will a governor and CS make repayments of over 600K per month(if they take the max mortage amount of 40M)? ama who ever came up with these thresholds factored in the bribes received by these people? If Obiero did it, Who Am I?
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Rank: User Joined: 1/20/2014 Posts: 3,528
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Swenani wrote:If we make the assumption that the job security for the governor and CS,PS etc is limited to 5 years and assuming that the loan attracts 0% interest how on a earth will a governor and CS make repayments of over 600K per month(if they take the max mortage amount of 40M)? ama who ever came up with these thresholds factored in the bribes received by these people? SRC is mandeted to do what again, okay!!!!! Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Swenani wrote:Pay blocks most civil servants from car and Mortagage loansQuote:Thousands of civil servants in job groups A, B, C and D who earn an average of between Sh11,420 and Sh15,670 per month are technically locked out of the car loan scheme that promises workers between Sh600,000 and Sh10 million in five years.
A car loan of 600,000 will require a monthly deduction of Sh10,781 over the five years that the SRC has specified. Those below job group M, which has an average consolidated monthly pay of Sh75,000, will not be able to access the 20-year mortgage scheme assuming the Central Bank of Kenya average mortgage size of Sh6.4 million that requires a monthly repayment of Sh35,000 based on the annual interest of three per cent.
Though the government scheme provides mortgages of less than Sh4 million, civil servants in job group H, whose average pay is Sh28, 000, would struggle to access a home loan of Sh3 million that will demand a monthly repayment of Sh17,000. Quote:The interest on both the car and mortgage schemes is three per cent per annum on reducing balance— a favourable term given commercial bank loans currently average 18 per cent. Can this scheme lead to a drop in interest rates charged by commercial bank? Will never happen in our lifetime... possunt quia posse videntur
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