The 78 Nakuru MCAs will each receive Sh5 million for car loans and mortgages.
Speaker Joel Maina told the legislators that the deal with Family Bank has been sealed.
A total of Sh390 million will be spent in the plan.
"Members can now access the car loans and mortgages from Family Bank," Maina said on Tuesday.
However, a case is pending at the Nakuru law courts over how the bank was awarded the mortgage tender for the first assembly.
It is said the bank was awarded the tender under unclear circumstances.
The case had been filed by former Nakuru nominated MCA Margaret Kiiru.
Nakuru assembly clerk Joseph Malinda said the bank was awarded the tender following an advert in the local dailies.
Malinda said the due process was followed in the tender process.
"The tender to process the loans was advertised by the assembly on all the dailies," he said.
Malinda said the loan will be paid at an interest rate of 3 per cent.
MCAs who spoke with the Star in confidence said it will be tricky for most of them to secure the loans.
They said this follows the downward review of their salaries in new structures laid down by Sarah Serem's salaries commission.
Currently, each MCA is entitled to Sh144,000 every month before tax.
An MCA said the situation has been complicated by the fact the plenary allowance was withdrawn.
"I don't think I will be in a position to secure that loan since my salary can not be able to service such a scheme."