Govt Moves to Cut Costs by Leasing 242 More Vehicles

In a move to reduce the cost of acquiring and maintaining government cars that consistently weigh down the taxpayers, the government has increased the number of vehicles to be leased.

In a statement dated Tuesday, February 21, the National Treasury and Economic Planning called upon suppliers to submit applications to lease vehicles to the government. 

This was for the tender of motor vehicles leasing program phase VII. The government planned to increase the number of leased vehicles from 1,410 to 1,652.

A fleet of vehicles rehabilitated by DCI at a cost of Ksh9.4 million.

DCI

“The National Treasury invites sealed Tenders from Original Motor Vehicle Manufacturers, Motor Vehicle Dealers, Leasing Companies, and Interested Firms for Provision of 1,652 No. vehicles for the National Government Administration, National Police Service, Kenya Prisons Services, and other MDAs for Motor Vehicles Leasing Programme Phase VII,” read part of the notice.

According to the statement, all interested applicants should take note of the deadline scheduled for Wednesday, March 1, 2022, before 10 am.

They were advised to visit the relevant tender documents for free on treasury(dot)go(dot), or www(dot)tenders(dot)go(dot)ke.

“All bid documents must be chronologically serialised or paginated. All Tenders must be accompanied by a Bank Guarantee of Ksh5 million from a reputable bank in Kenya valid for 30 days beyond the tender validity period,” the statement read.

Others set to benefit from the increased number of leased vehicles are car dealers who had lamented over reduced sales.

In December 2022, the government leased 1,410 vehicles. These vehicles are used by government Ministries, Departments, and Agencies (MDAs).

According to data from the Kenya National Bureau of Statistics (KNBS), the number of new and second-hand units registered between January and August 2022 reduced to 49, 751 from 60,006 units in the same period in 2021.

Meanwhile, retired President Uhuru Kenyatta raised the leasing of government vehicles in 2010 while he was the Finance Minister as he read the budget.

He also announced the removal of withholding tax on leasing fees in a move meant to improve cash flow for both lessors and lessees.

Undated photo of hundreds of cars at a yard in Nairobi.

File