Nairobi County Assembly has become the first devolved unit in the country to issue car grants to its Ward representatives.

On March 2, 2021, the assembly set aside Ksh246 million in its upcoming supplementary budget to cater for car grants for Members of the County Assembly.

The implementation will now see the car loans issued to the 122 MCAs turned into grants.

President Uhuru Kenyatta poses with Nairobi County MCAs at State House Nairobi on February 28, 2020.

Coincidentally, the supplementary budget was fronted before the assembly on the same day the house ratified the Constitutional Amendment Bill 2020, in which 114 MCAs voted in favour of the bill.

Nairobi Assembly Clerk Edward Gichana stated that the MCAs had acted in accordance with President Uhuru Kenyatta's directive to issue the leaders with Ksh2 million car grants.

The Salaries and Remuneration Commission (SRC) then moved to issue guidelines for the conversion of loans to car grants.

"In honour of this directive among other financial obligations this supplementary will focus to address the following... additional Ksh246 million for transfer of funds to the County Assembly Fund account to cater for car grant," Gichana stated.

At the dawn of February 2021, SRC ratified President Kenyatta's directive approving a Ksh4.5 billion car grant for MCAs and county assembly speakers.

SRC Chairperson Lyn Mengich stated that the car grants would be issued within the current car loans fund of Ksh4.5 billion thus having no effect on the expenditure ceiling.

"Upon conversion, the existing car loan shall cease and the speakers and Members of the County Assembly who have already benefited on the existing car loan shall convert their car loan to transport facilitation benefit in form of a car grant," a letter by SRC on February 9 read in part.

Kenya Revenue Authority however stated that it would examine the terms of the car grant with an aim of collecting 30 per cent tax.

This if effected, would leave the MCAs with only Ksh1.4 million.

President Uhuru Kenyatta addresses Nairobi County MCAs at State House, Nairobi on February 28, 2020.