Nairobi, Jan. 14 -- Fired State officers and public servants look set to continue enjoying cheap repayment of car loans in a controversial move aimed at spurring uptake of the State Officers and Public Officers Motor Car Loan Scheme Fund.

The Treasury has proposed that officers and civilservants dismissed on disciplinary grounds will not have their repayment terms revert to higher commercial rates. The average commercial bank lending rate stood at 14.88 percent as at November last year.

Additionally, the Treasury wants to lower the interest rate on the loans to four percent from the current five percent.

Since its inception in 2015, the State Officers and Public Officers Motor Car Loan Scheme Fund has grappled with dismal uptake, with ...