A BITTER PILL TO SWALLOW FOR MOST CIVIL SERVENTS.. Majority of civil servants are unlikely to benefit from the SRCs cheap car loans and mortgages offered to them from this month due to their low pay. Civil servants below job group H will find it difficult to access the loans and meet a rule that requires them to retain at least a 1/3 of their pay after taxes and other deductions, thus, the mortgage will be restricted to mid and top cadre State workers. A car loan of 600,000 will require a monthly deduction of Sh10,781 over the five years that the SRC has specified. The 20-year mortgage scheme of Sh6.4 million requires a monthly repayment of Sh35,000 based on the annual interest of 3%. Civil servants in job group H, whose average pay is Sh28, 000, would struggle to access a sh3 million home loan that will demand a monthly repayment of Sh17,000. Thousands of civil servants in job groups A, B, C and D who include cleaners, sweepers, guards and other support staff 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. Artisans and storekeepers (Job group F), clerical officers and telephone operators (Job group E), drivers and cooks (Job group D) are also outside this loans bracket.
Posted on: Tue, 06 Jan 2015 03:29:13 +0000
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