The National Treasury has revealed details of the affordable car loan scheme for public officers, including who qualifies.
In a statement dated February 4, 2026, the Treasury stated that under the programme, the State Officers and Public Officers Motor Car Loan Scheme Fund limits are set by job group, ranging from Ksh 600,000 for lower civil service grades to Ksh 5 million for chief executives of government agencies.
Additionally, all loans attract an interest rate of 4 per cent per annum on a reducing balance.
To promote accountability and sustainability, applicants must follow a structured process that includes identifying a vehicle and submitting the required documentation for the loan funds.
Motor Car Loan Limits and Conditions
Under the State Officers and Public Officers Motor Car Loan Scheme, eligible beneficiaries may access car financing ranging from KSh 600,000 to KSh 4 million, depending on their group.
- Chief Executive Officers of Government Agencies or Organs are eligible for up to KSh 5 million loans
- Civil Service Grades S, T, U, and equivalent: up to KSh 4 million
- Civil Service Grades P, Q, R, and equivalent: up to KSh 3 million
- Civil Service Grades K, L, M, N, and equivalent: up to KSh 1.5 million
- Civil Service Grades G, H, J, and equivalent: up to KSh 800,000
- Civil Service Grades A, B, C, D, E, F, and equivalent: up to KSh 600,000
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Moreover, to qualify for the motor car loan, applicants must have the following :
- He or she must be a serving State Officer or Civil Servant in the National Government, excluding the Judiciary and Parliament.
- They must demonstrate the ability to repay the loan.
- The beneficiary must undertake to register the car jointly in the name of the Motor Car Loan Scheme Fund and the borrower.
- They must ensure the vehicle is fully insured for the duration of the loan; failure to do so may result in the Fund renewing the insurance and debiting the applicant’s loan account.
- A beneficiary must accept that the Fund will take life insurance on the loan, with premiums debited to the loan account.
- They must register a charge in favour of the Fund, allowing the sale of the car if loan terms are breached.
- They must be able to cover the costs of valuation and legal fees, and hold a valid driving license
- He or she must agree to monthly loan repayments via salary deductions or other benefits.
- They must provide a certified copy of the Sale Agreement and a current valuation report from a registered valuer.
- He or she must purchase the vehicle from a recognised dealer or owner.
How to Apply
To apply for the motor car loan scheme as Chief Executive Officer, an interested applicant must follow the application procedure:
The applicant must pay a non-refundable application fee of Kenya Shillings one thousand (Ksh1000.00) to the designated account of the Fund.
He or she must apply by filling out an application form for the loan and return it to the Chief Executive Officer of the Fund with proof of payment of the application fees upon recommendation by their respective Accounting Officers.
The Chief Executive Officer of the Fund will undertake an evaluation of the application to ascertain if it meets all the requirements for financing.
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The list of eligible applicants will be forwarded to the Advisory Board with recommendations for approval.
Responsibilities of State Officers and Public Officers Under the Scheme
State and public officers who benefit from the Motor Car Loan Scheme must comply with several responsibilities to ensure proper use and repayment of the loan.
These include submitting a duly filled application form with all required documents, paying the prescribed application fee, and identifying a suitable motor vehicle before negotiating the purchase price with the dealer or owner.
Additionally, the Successful applicants must sign the necessary sale, acceptance, and charge documents and ensure that loan repayments are made on time, no later than the 10th day of each month, to avoid penalty charges.
Beneficiaries are also expected to meet any additional requirements set by the Chief Executive Officer of the Fund and to ensure that the tracking device installed in the motor vehicle is not tampered with throughout the loan period.
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