The government through the Ministry of Housing, together with Savings and Loans (S & L), the mortgage arm of KCB has embarked on an ambitious plan to grant civil servants loans, payable at an affordable interest rate of 5%. In addition, the bank will provide a waiver of most of its other charges.
Civil servants will have access to loan facilities to be funded by the government but managed by S & L as per the mortgage agreement scheme. The intention is to enable civil servants, especially middle and low income earners regardless of their job groups to purchase or build homes to avoid the problem of eviction after retirement.
There has been a blame game between the public and private housing sector over the high cost of housing charges, with the government laying the blame on the private sector for cashing in on tenants while the latter point fingers at the government for increasing the cost charges on building materials. This will come to an end if the government pushes the housing program to the end.