The Kakamega County Assembly has moved to recover more than Sh250 million from former MCAs who failed to repay car and mortgage loans.
Assembly clerk Patrick Kamwesser said the house had placed an advert in the local dailies seeking legal services to help pursue the debt. The money forms part of the Sh440 million that was issued to ward representatives in 2014 under the car loan and mortgage scheme.
So far, only Sh190 million has been recovered, leaving the revolving fund under pressure and limiting access for current members. The assembly says the unpaid balances have made it difficult to issue mortgage facilities to serving MCAs.
The problem has already triggered tension inside the chamber. In mid-October, angry MCAs locked the offices of Speaker Morris Buluma, finance director Laban Atemba and Kamwesser in protest over what they described as neglect of their welfare.
Out of 89 ward representatives, only 15 have received mortgage facilities, according to the assembly. Kamwesser said the county legislature had decided to take legal action against the defaulters after several demand notices failed to produce repayment.
The dispute has also reached court. Three MCAs — Walter Andati, Jackline Mwakha and Josephat Mwasame — have filed a petition seeking orders to compel the assembly to meet its obligations.
In their case, the petitioners argue that Kamwesser, Buluma and Atemba failed to put in place proper recovery mechanisms to ensure the fund remained revolving. They want the court to extend the repayment period for MCAs who have not received their mortgage facilities because of the delay in disbursement.
The three also say the assembly leadership acted in a discriminatory manner and violated their rights by failing to provide them with three staff members and an office as elected MCAs.
In November last year, former MCAs were told to make alternative arrangements for repaying their car loans and mortgages. That followed the Court of Appeal’s decision to quash ward representatives’ bid to earn Sh8 billion in salaries until March 2018.
Kamwesser had said the former members would have to forfeit their gratuities to settle part of the outstanding balances.
