Leasing firms have praised the
government’s plan to hire 1,500 vehicles in the coming financial year
for the police and county commissioners.
They
said part of the Sh3 billion that has been set aside for the initiative
will be money well spent because repair and maintenance costs will be
borne by leasing companies.
National
Treasury Cabinet Secretary Henry Rotich last week said through leasing,
the government would save over 30 per cent of costs and be able to offer
uninterrupted service.
Ryce East
Africa managing director Vudayavargam Srinivas said by opting for
leasing as opposed to buying vehicles, the government has built
confidence in the industry.
“We
expect leasing to make massive contribution to the economy by enabling
businesses to put their money in their core operations and not in
non-core assets,” said Mr Srinivas.
He
said despite the overwhelming evidence of cost-saving arising from
leasing, businesses are yet to take up the practice with only under 10
per cent currently hiring motor vehicles. “It is sad that most private
companies are yet to see benefits of leasing, and many still believe in
owning assets,” said Mr Srinivas.
He said that rather than a company tying up its money on an asset, leasing lets a business invest it in its core business.
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