Leasing vehicles to help reduce costs, say firms

ECB managing director Sammy Itemere (left) and Ryce Group MD Vudayavargam Srinivas during the signing of a financing agreement to enable customers buying Hero motorbikes-which are sold through franchise holder Ryce East Africa. 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. PHOTO/FILE  

In Summary

• 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.

By Nation Reporter
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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.