By MACHARIA KAMAU
The Government is reviewing its official transport system, and has eyes set on leasing transportation services, in a bid to cut costs and increase efficiency of official transport services.
The plan to outsource transportation services, which is expected to subsequently reduce the cost of delivery of services, is contained in the budget for this financial year.
And yesterday, the Finance Ministry invited motor vehicle dealers and leasing companies to submit an expression of interest (EOI) for the provision of vehicle and transport services through leasing.
"The fleet to be leased will comprise approximately 1,500 vehicles of different makes, that range from 1,300 cc to 3,500 cc," the ministry said in an advert calling for EOI on Thursday.
"The leasing arrangement envisaged may include insurance, maintenance, replacement of non-functional vehicles, and fleet management systems and personnel."
Currently, Government agencies, including ministries and parastatals, buy and manage their own vehicle fleet and transport services.
"This has often been accompanied by increasing costs of transport without commensurate improvements in service delivery," the ministry said.
"The primary objective of leasing will be to provide official Government transport in a manner that improves and expands public service delivery, achieves significant cost reduction, and improves the efficiency and effectiveness of Government operations."
Players offering leasing solutions say they help reduce risk and complexity associated with motor vehicle ownership, whilst providing a seamless transport solution that would improve service delivery from Government and parastatals.
Source: The Standard | Online Edition
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