Botswana cuts spending on cars as Kenya fumbles

Efforts at managing growing public expenditure by cutting down on purchase of government vehicles is working in other countries, even as Kenya fumbles on the implementation of such a policy.

Botswana announced on Friday that it had slashed buying of new State vehicles by 85 per cent, saving its economy Sh2 billion.

Ms Gatsi Seoke, a principal transport officer, told a workshop of heads of government departments that the state was supposed to buy 700 new vehicles in the current financial year but only the purchase of 100 has been approved.

Similar austerity measures announced by Kenya Finance Minister Uhuru Kenyatta last month are already riding on a bumpy track.

Last week, State House said it had returned eight state-of-the-art vehicles to dealers as they were procured without its authority and at a time when the Government had frozen the purchase of new cars.

All Cabinet ministers, permanent secretaries and other public officials are also to keep only one of no more than 1800cc engine capacity.

Several ministers have also indicated they would not surrender their fuel guzzlers, a move that threatens to scuttle the plans.

When Mr Kenyatta announced the austerity measures, critics warned that the policy could flop especially after similar proposals announced by former finance ministers Simeon Nyachae in 1998 and Amos Kimunya last year failed to get support in Parliament.

Treasury PS Joseph Kinyua said the government expected to generate about Sh500 million from the sale of cars returned by its officials.

The measures are aimed at managing public expenditure in a sluggish economy while the money will be used in an economic stimulus package and social projects such as resettling internally displaced people.

Wastage in government
“There is so much wastage in Government and the government must be strict on these new rules on cars, ” said Dr Charles Otieno, a policy analyst with Polity and Policy, a local think-tank.

“As it stands, this might not work yet it would save this economy a great deal of the finances it needs”

Mr Kenyatta said the move by State House to reject the eight cars will save taxpayers about Sh150 million.

But anti-corruption watchdog Mars Group reckons the rejection of the cars “means nothing” as State House still has 149 vehicles in Nairobi alone.

While Government statistics are scanty on the specific amount spent annually to buy State cars and the number of vehicles, analysts estimate that this year alone, more than Sh4 billion will be used on this expenditure.

In his speech last month, the Finance Minister froze purchase of new vehicle units, except for security purpose, with any new procurement only being allowed under exceptional circumstances.

“The Government must cut the massive spending on non-priority areas and instead channel the funds into initiatives that improve the harsh business environment,” said Patrick Obath, the chairman of the Federation of Kenya Employers (FKE) in a recent interview.

“It should invest in infrastructure, boost private sector investment, scale down on non priority expenditures and remove unnecessary bureaucratic procedures for business operations.”

In Botswana, the Transport Establishment Review Committee (TERC) of the Ministry of Transport said the cut-down was informed by the realisation that some government vehicles are under-utilised.