Treasury Invites Civil Servants to Apply for Car Loans of Up to Ksh5 Million; How to apply
- Vincent Kiprop
- Feb 5
- 3 min read
The National Treasury has released detailed guidelines on the affordable motor vehicle loan scheme for public officers, outlining eligibility criteria, loan limits, interest rates, and the application process.
In a statement dated February 4, 2026, the Treasury said the State Officers and Public Officers Motor Car Loan Scheme Fund offers financing based on job groups, with loan limits ranging from Ksh600,000 to Ksh5 million.
All loans under the scheme attract an interest rate of four per cent per year, calculated on a reducing balance.
According to the Treasury, the programme is designed to enhance access to affordable vehicle financing while promoting accountability and sustainability through a structured application process.
Motor Car Loan Limits
Under the scheme, loan amounts are determined by job group as follows:
Chief Executive Officers of government agencies or state organs are eligible for loans of up to Ksh5 million.
Civil servants in grades S, T, U, and equivalent may access up to Ksh4 million.
Those in grades P, Q, R, and equivalent qualify for loans of up to Ksh3 million.
Officers in grades K, L, M, N, and equivalent can access up to Ksh1.5 million.
Civil servants in grades G, H, J, and equivalent qualify for loans of up to Ksh800,000.
Officers in grades A, B, C, D, E, and F, and equivalent, may access up to Ksh600,000.
Eligibility Conditions
To qualify for the motor car loan, an applicant must be a serving state or public officer in the national government, excluding officers in the Judiciary and Parliament.
Applicants must demonstrate the ability to repay the loan and agree to monthly repayments through salary deductions or other approved benefits.
Beneficiaries are required to jointly register the vehicle in their name and that of the Motor Car Loan Scheme Fund and ensure the car remains fully insured for the duration of the loan.
The scheme also requires applicants to accept life insurance cover on the loan, with premiums charged to the loan account, and to register a charge in favour of the Fund, allowing the vehicle to be sold if loan terms are breached.
Applicants must hold a valid driving licence, meet valuation and legal costs, and purchase the vehicle from a recognised dealer or owner.
They must also submit a certified copy of the sale agreement and a current valuation report from a registered valuer.
Application Process
Interested applicants are required to pay a non-refundable application fee of Ksh1,000 to the designated Fund account.
The applicant must then complete the loan application form and submit it to the Chief Executive Officer of the Fund, accompanied by proof of payment and a recommendation from their respective accounting officer.
The Fund’s Chief Executive Officer will evaluate the application to determine whether it meets all financing requirements.
Successful applications will be forwarded to the Advisory Board for approval.
Responsibilities of Beneficiaries
Public officers who benefit from the scheme must comply with several conditions, including submitting all required documentation, identifying a suitable vehicle, and negotiating the purchase price with the dealer or owner.
Successful applicants are required to sign all sale, acceptance, and charge documents and ensure loan repayments are made on time, no later than the tenth day of each month, to avoid penalties.
Beneficiaries must also comply with any additional requirements set by the Fund’s Chief Executive Officer and ensure that the tracking device installed in the vehicle is not interfered with throughout the loan period.
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