Companies

Peugeot leases out 45 cars to NTSA for patrols

meja

National Transport Safety Authority director general Francis Meja. PHOTO | FILE

The Kenyan dealer of french automaker Peugeot, Urysia, is this week set to deliver 45 vehicles to the National Transport and Safety Authority (NTSA) to boost the agency’s surveillance capabilities.

The vehicles, stations wagons and ambulances, are being delivered to the NTSA as a part of an ongoing government vehicle leasing programme in which Urysia was contracted to supply 300 vehicles.

The deal, which is worth approximately Sh631 million, will also see Urysia supply Peugeot vehicles to other government agencies including the Ministry of Health, Kenya Prisons and the Solicitor General’s office.

NTSA director general Francis Meja says the vehicles — 40 station wagons and five ambulances — will be deployed across the country but a majority of them will remain in Nairobi.

“This is the first time we are receiving vehicles under this lease programme. The vehicles shall go a long way in improving our competences,” Mr Meja told the Business Daily on Friday.

“The vehicles will be used for all our monitoring purposes be it ensuring traffic laws are obeyed, including speed limits and curbing drunk driving. I shall flag off the new fleet next (this) week.”

Urysia, which took over Peugeot franchise three years ago, was among several auto dealers that were in 2014 shortlisted in a Sh2.5 billion leasing contract to supply the National Police Service with 1,200 utility vehicles and saloon cars.

Other dealers were Toyota Kenya, Ecta Kenya which sells Subaru cars, Land Rover dealers RMA Kenya, General Motors East Africa and CMC.

In 2014, the government, which accounts for a quarter of all new vehicle sales, leased 2,700 vehicles in a Sh6.7 billion deal that mainly benefited firms like Toyota Kenya and CMC.

Urysia began delivering its portion of this contract last month.

“Initially, the National Police Service was to take all the 300 units but the delivery has now been split,” Claude Mwende, Urysia chief executive, told the Business Daily.

“The police service has taken 120 units while the remaining 180 vehicles are being distributed to various government departments including the NTSA.”

The government is implementing a multi-billion-shilling motor vehicle lease plan, which was first mooted in 2010, to help cut transport costs.

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

In the current plan, car dealers have committed to service the government vehicles for a period four years or until they clock 160,000 kilometres, whichever comes first.

The government, in return, pays a monthly, quarterly or annual fee and returns the vehicles to the dealer once the contract expires.