Govt employees in Ministry-owned homes risk losing leases

The Ministry of Local Government and Public Works has issued a stern directive to all Government employees residing in Ministry-owned residential properties to settle outstanding lease rentals and purchase instalments or risk losing their leases.

In a public notice, the Ministry expressed concern over an increasing number of tenants defaulting on payments, a trend that has resulted in mounting arrears and placed financial strain on public resources.

"The Ministry of Local Government and Public Works is urging all Government employees residing in Ministry-owned residential properties to come forward with feasible payment plans to settle outstanding lease rentals and property purchase balances," the statement read.

Authorities stressed that strict enforcement of debt recovery is mandated under public finance management regulations.

"The Ministry has noted with great concern a significant number of lessees have defaulted on their lease payments, resulting in growing arrears. In accordance with Part V, Section 12 of the Public Finance Management Act and Section 49(2) of the Public Finance Management (Treasury Instructions), 2019, Accounting Officers are mandated to manage public revenue efficiently and ensure all Government debts are collected promptly," it added.

To facilitate compliance, the Ministry has given tenants a grace period until 30 September 2025 to submit realistic and acceptable payment plans.

"Failure to comply within the stated time frame will result in the cancellation of lease agreements, in accordance with Section 22 of the signed Memorandum of Agreement, without further notice," the Ministry warned.

The ultimatum underscores the Government's intention to tighten management of public housing resources and enforce accountability in line with fiscal discipline requirements.