Kakamega County Assembly has initiated the process of recovering Sh250 million from former ward representatives who defaulted on car loans and mortgages.
The assembly has advertised for lawyers to help recover the unpaid loans from the individuals, a majority who lost their seats at August 8 General Elections.
The Clerk Mr Patrick Kamwessar said the delay in repaying the loans had plunged the assembly in a financial crisis, making it difficult to advance car loans and mortgages to the current MCAs.
“We have no other option but engage lawyers to handle the matter since the former MCAs have failed to respond to notices to pay up the money,” said Mr Kamwessar.
He said the defaulters had made it difficult for the county assembly to advance car loans and mortgages to the current MCAs.
Mr Kamwessar said the county assembly was currently recovering about Sh4 million a month.
“Currently we have managed to advance some loans to MCAs from the money we have recovered but the amount is small,” said Mr Kamwessar.
The former MCAs owe the county between Sh500, 000 and Sh4 million.
Each MCA is entitled to a Sh2 million car loan and a Sh3 million mortgage repayable within their term of office at an interest rate of 3 per cent.
Following the defaults, the assembly has proposed tough rules that will ensure the current MCAs fully repay their loans before end of term.
Registration for vehicles and land acquired under the loan facility now have to be registered both in the assembly under the MCAs’ names.