Private sector welcomes govt leasing route

June 17, 2013

, ROTICH-WAIGURU-BUDGETNAIROBI, Kenya, Jun 17 – The Leasing Association of Kenya has welcomed the proposal by Cabinet Secretary for the National Treasury, Henry Rotich, to allocate funds for the leasing of assets and equipment through public private partnership.

The Leasing Association of Kenya Chairperson, Edna Kihara says that the proposals to facilitate the equipping of crucial government functions through leasing options are an indicator of financial resources management progress in the public service.

“The Leasing Association of Kenya welcomes the proposals presented by Cabinet Secretary Rotich which now reflect a paradigm shift by the government particularly the consideration of leasing solutions to deliver core public services,” Kihara said.

Kihara noted that the government’s move to adopt leasing solutions is likely to spur a ripple effect within the private sector.

She said that the association is looking forward to a consultative session with the National Treasury among other stakeholders to deliberate on practical strategies to make the proposals a reality.

“The proposed move by the government to adopt leasing solutions is particularly sweet music to the local motor industry with the government standing to save more than 30 percent of its resource allocation for new motor vehicles,” she added.

While presenting the budget speech, Rotich confirmed that the government is seeking to adopt innovative ways to, better deliver public services, including leveraging on ICT and leasing of assets and equipment through public private partnership.

Rotich confirmed that the National Treasury has allocated Sh3 billion for leasing of 1,200 motor vehicles annually to equip the police force.

With the allocation, the National Police Service is expected to enhance its patrol and rapid response capacity. Fleet outsourcing through leasing solutions helps to reduce the risk and complexity associated with motor vehicle ownership, whilst providing a seamless transport solution that will greatly improve service delivery by public sector organisations.

“The primary benefits include eliminating asset and maintenance risks, flexibility of fleet composition, reduced administrative burden and ensuring a modern fleet that is fit for particular purposes,” Kihara explained.

By adopting motor vehicle leasing, the government will also create further employment opportunities; effectively facilitating economic development.


Latest Articles

Stock Market

Most Viewed