A new twist in the MCA auto subsidy promise

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The Budget Controller (CoB) on Tuesday February 23 released a clarification on a memo that was leaked yesterday Monday February 22 and has been widely interpreted as rejecting the car dealership promise issued to members of county assemblies (MCA ).

In a press release on Tuesday, CoB stressed that it had not rejected the proposal, but only said that the auto subsidy must go through the required process before it is issued.

“There are processes that need to be followed to ensure that MCAs do not run into problems in terms of grant accounting,” read a statement from Budget Controller Margaret Nyakang’o.

She also pointed out that there was sufficient funds to cover auto subsidies.

President Uhuru Kenyatta speaks at the National Cargo Deconsolidation Center, Nairobi, Wednesday February 10, 2021

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The press release issued on Tuesday had a very different tone to an internal memo Nyakang’o wrote to Wages and Compensation Commission (SRC) chief executive officer Anne Gitau, seeking to stop the implementation car subsidy before resolving certain problems.

Nyakang’o said most counties provided for a car loan, not a car subsidy. According to her, this is implemented through legislation passed to create a revolving fund.

The obstacle to this, she stressed, is that these laws do not provide for the issuance of a car subsidy. Additionally, she said most counties merged the auto loan facility into the revolving fund.

“Some counties run a mortgage and auto loan fund for staff and county assembly members. It should be noted that in some counties the kitty is not fully funded,” Nyakang’o said.

She also pointed out that she had divided the county governments’ requests to release funds into two categories; advice on how to implement the conversion of the auto grant loan facility into a grant and the County Revenue Fund (CRF) withdrawals to fund it.

“The CoB office has received numerous requests from county governments regarding the implementation of the revised car loan allowance into a transport facilitation benefit in the form of a car subsidy for speakers and MCAs, ”she said.

She also requested clarification on how to convert auto loans into an auto subsidy benefit with the TBEN taking into account the issues raised.

A file from the National Treasury

A file image of the National Treasure

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