Leasing of vehicles as opposed to purchasing is becoming a new trend. County Government of Laikipia has officially commissioned leased motor vehicles.
These are meant to upgrade 700 kilometres of road across the county in the current financial year, 2019/2020.
This makes it the first county government to lease plant machinery equipment and vehicles. Other organisations that have retorted to minimising operational costs by leasing vehicles include The Kenya Police Service.
Ndiritu Muriithi and a team flagged off part of the equipment that was leased at a tune of Ksh. 180 million.
Laikipia becomes the first county to lease infrastructural equipment.
Several counties including West Pokot, Busia, Samburu, Baringo, Bungoma and Meru sent their representatives.
Muriithi argued that the leasing program was efficient, effective and affordable instead of buying new equipment.
Efficiency ?
According to Muriithi, they’ve reduced cost by leasing. It will also boost efficiency. Particularly in completion of the infrastructural upgrade process where the Lorries and graders will be available 97 percent of the time.
National Treasury and Planning Chief Administrative Secretary Nelson Gaichuhie attributed the county government’s achievement to close partnership with his docket.
Laikipia has been excelling because it has been following closely the Public Finance Management Act and also partnering closely with the National Treasury.
The leasing deal inked was for tipper trucks and road graders geared towards easing road construction works.
The first batch of vehicles included :
- five tipper trucks
- two drum rollers
- one excavator
- two water boozers
- two motor graders
- four pickups.
Laikipia Deputy Governor John Mwaniki said that the leasing program would soon be rolled out to the health sector. More so to enhance efficient delivery of services.
Medical Equipments
Mwaniki said that there is equipment at some health facilities which are nonfunctional. They will go ahead to lease additional ones instead of bearing a lot of cost in repairing the ones that have broken down.
Toyota Kenya managing Director Arvinder Reel said that they were proud that the program has now started trickling down to the county government. This comes after the National government took it by leasing police vehicles.
Reel noted that they are looking forward to engaging other counties. The deal in Laikipia has acted as the pioneer county.
Speaker Patrick Waigwa lauded the move. Additionally, urging local contractors to calm down as the program would not move them out of business.