Publication of the regulations paves the way for the Treasury to establish the State Officers and Public Officers Car Loan Scheme Fund and recruit staff to run it.

The fund will receive car loan applications from civil servants and process them according to set guidelines that prescribe the maximum amounts available for workers across the various cadres.

The regulations also provide for procurement of a financial institution that will disburse the car loans to civil servants once they are approved by the fund.

The car loan scheme, which was announced in 2014 together with a mortgage scheme, will enable government workers borrow money at interest rates of three per cent – way below the 15-20 per cent average commercial banks are charging.

“The initial capital of the Fund shall be Sh1 billion appropriated by Parliament in the financial year 2014/15 and additional capital of the Fund shall be made in the subsequent financial years’ budgets,” Mr Rotich said.

The regulations say that the loans will be provided on a first-come first-served basis meaning that the Sh1 billion could run out in months.

The car loan and mortgage schemes are seen as sweeteners that should add to the allure of public service. The Civil Service has in recent years competed with the private sector for top talent.

“It is expected that implementation of the benefits will motivate public officers and immensely contribute towards attraction and retention of requisite skills in the public service,” Sarah Serem, the chair of the Salaries and Remuneration Commission, said earlier in the year.

The regulations have set out a schedule of how much officers in each grade can apply for. The amounts range from Sh600,000 to Sh10 million.

Cabinet secretaries, the Attorney General, Secretary to the Cabinet and Auditor-General are entitled to a maximum of Sh10 million car loan.

Principal secretaries, chair and members of independent commissions and the Controller of Budget will get up to Sh8 million while the Director of Public Prosecutions will get up to Sh6 million.

The Registrar of Political Parties, secretaries of independent constitutional commissions, chief executive officers of government agencies will get up to Sh5 million while civil servant in grades S, T and U will be entitled to Sh4 million.

Those in grades P, Q and R will be entitled to Sh3 million while those in grades K, L, M and N will receive a maximum loan of Sh1.5 million.