Civil Servants Mortgage Scheme Kenya
What Is A Civil Servants Mortgage Scheme Kenya?
The Civil Servants Housing Scheme Fund (CSHSF) in Kenya provides mortgage loans to civil servants to encourage uptake of mortgages among government workers.
The maximum amount of loan that can be granted to a civil servant ranges between KShs 4 million to KShs 20 million depending on seniority and affordability.
The loan is repayable within a period of twenty (20) years or before the loanee attains the age of sixty-five (65) years, whichever is earlier. The interest payable on the loan is at the rate of 5% per annum on a monthly reducing balance.
The CSHSF has facilitated more than 3,000 loans since its inception in 2014. In the 2018/19 financial year, the Fund facilitated 989 civil servants with mortgages worth Sh4.4 billion through the KCB Group and HF Group.
KCB advanced loans worth Sh4.42 billion while HF disbursed Sh2 billion. The Treasury failed to allocate cash to the State Department for Housing for disbursement of loans under the Civil Servants Housing Scheme in the 2018/19 and 2019/20 financial years.
In addition to the CSHSF, the National Bank of Kenya offers a Special Scheme Residential Mortgage to salaried civil servants working with the government, parastatals, or corporate companies that provide housing benefits.
The scheme enables civil servants to construct their own homes or purchase one off-plan or complete.
How To Apply For The Civil Servants Housing Scheme Fund (CSHSF)?
To apply for the Civil Servants Housing Scheme Fund (CSHSF) in Kenya, interested civil servants should express their interest by registering with the CSHSF.
The applicant should apply by filling an application form for the loan through the Administrator of the CSHSF.
The maximum amount of loan that can be granted to a civil servant ranges between KShs 4 million to KShs 20 million depending on seniority and affordability.
The loan is repayable within a period of twenty (20) years or before the loanee attains the age of sixty-five (65) years, whichever is earlier. The interest payable on the loan is at the rate of 5% per annum on a monthly reducing balance.
According to the latest data, the CSHSF gave 1,321 civil servants mortgage loans through the Kenya Commercial Bank (KCB) Group and Housing Finance (HF) Group as of June 30, 2021. KCB advanced loans worth Sh4.42 billion while HF disbursed Sh2 billion.
What Is The Maximum Amount Of Loan That Can Be Granted To A Civil Servant?
The maximum amount of loan that can be granted to a civil servant in Kenya depends on their seniority and affordability.
According to the Civil Servants Housing Scheme Fund (CSHSF), the maximum amount of loan that can be granted ranges between KShs 4 million to KShs 20 million.
On the other hand, Nasonga.com states that civil servants can borrow between KShs 4 million to KShs 40 million depending on their job group. The interest payable on the loan is at the rate of 5% per annum on a monthly reducing balance.
To apply for a mortgage loan for civil servants in Kenya, interested civil servants should register with the Civil Servants Housing Scheme Fund (CSHSF) and fill out an application form for the loan through the Administrator of the CSHSF.
The application is subjected to the appraisal criteria among other normal lending requirements by the mortgage finance institutions.
Only serving civil servants are eligible to apply for the loans, and eligibility for a loan under shall be for a civil servant who has been confirmed in employment provided that any civil servant on contract terms of service shall have an unexpired contract period of more than twelve months.
The loan is repayable within a period of twenty (20) years or before the loanee attains the age of sixty-five (65) years, whichever is the earlier.
