15 high-ranking state officials have been found to be mismanaging their 380 million shilling mortgages, according to the auditor general.According to Nancy Gathungu, an audit of the State Housing Mortgage Scheme Fund showed that 15 officers' obligations had not been paid in full and had accrued to a total of 15.6 million shillings.In order to finance affordable mortgage loans of up to 40 million shillings per state employee, the state launched the Fund in 2015.
The Cabinet Secretary, the Governor, the Attorney General, the Cabinet Secretary, and the Chief of Defense Forces are the principal recipients of the affordable home loans; each is qualified for a home loan of up to 40 million shillings.There are 22 Cabinet, Justice, and Cabinet Ministers as of right now. The report for the fiscal year ending in June 2021 raises questions about the recoverability of debt totaling Sh379,774,630 and debt totaling Sh15,601,855.In a report to Parliament, Ms. Gathungu stated that the State Mortgage Scheme Fund's financial status shows a balance of 2.96 billion shillings in.She claimed that no documentation of the efforts taken by the Fund management to recoup the debts was offered for audit examination. There is also no provision for bad debt on mortgages, according to Ms. Gathungu. According to Ms. Gathungu's report, under these conditions, the recoverability of the loans was 379,774,630 shillings, and the debt of 15,601,855 shillings was included in the balance of long-term receivables of 2,962,606,855 shillings as of June 30, 2021.Senior officials only pay a small portion of market rates on their loans, which can reach 12.39% for the bulk of Kenyans who take out loans from commercial banks.
A home loan of up to 35 million shillings is typically available to key secretaries, independent committee members, and independent office holders (budget controller and auditor general).Within 20 years or before the borrower turns 70, loans must be repaid.
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