Sh6.7bn earmarked for aircraft, police car leases

The government will spend Sh6.7 billion in the next fiscal year to lease aircraft and motor vehicles for the police service to aid the fight against rising insecurity.

The move is set to benefit players in Kenya’s aviation and motor dealing industries after the recent award of a Sh3 billion leasing contract to Toyota Kenya which is supplying police with 1,100 vehicles.

The leasing programme will see the government expand the capacity of police officers to respond quickly and more effectively to incidents of crime.

The 2014/15 budget summary says the government has set aside “Sh6.7 billion for lease financing of police motor vehicles, and aircraft.”

The move to lease vehicles and aircraft is seen as a means of reducing spending on public sector transport where the various State agencies would buy and maintain their own fleet.

Leasing allows a client to use a vehicle for a fixed period of time which could run up to five years while paying monthly fees as the dealer takes care of maintenance.

This helps users of the leased cars to avoid the upfront capital expenditure they would otherwise incur if they opted to buy the vehicles.

The fresh leasing drive is part of a major security enhancement plan that will also see the hiring of 10,000 regular and administration police in the next fiscal year.

Insecurity has increased in the past one year, endangering public safety and denting the country’s image as a tourist and investment destination.

Terror group Al-Shabaab has carried out several attacks in the major towns including Nairobi and Mombasa, destroying property and killing scores of people.

The highest profile attack in recent times was executed at Nairobi’s Westgate shopping mall in September, killing at least 67 people and leaving the property destroyed,

The rise in terrorism attacks is seen hurting the economy by scaring away potential investors and foreign visitors who are key for growth in the local tourism industry.

Travel advisories linked to the terror attacks saw Kenya’s tourism earnings fall 2.1 per cent last year as the number of foreign visitors declined.

The sector earned Kenya Sh93.9 billion in the period compared to Sh96 billion in 2012.