Dealers selling new buses and trucks are set to compete for a new contract from the National Treasury which is seeking to procure 295 units of trucks and buses in the latest round of its motor vehicle leasing programme that recently got an additional Sh5.9 billion allocation in the financial year ended June.
Treasury, in a tender document, says it wants to hire the vehicles in seven lots to be used by National Government Administrative Services, National Police Service, Kenya Prisons Services and other ministries, departments and agencies.
Isuzu East Africa and CFAO Mobility Kenya are among the major assemblers and dealers in trucks and buses in the country.
The hiring of the vehicles is under the government motor vehicle leasing programme which is now in its 12th year. Treasury is targeting vehicle manufacturers, dealers, assemblers and leasing companies. Bidders have up to July 9 to submit their interest.
Treasury’s recent supplementary budget for the year ended June 2025 saw allocation under the motor leasing programme increased by Sh5.9 billion.
The latest lease agreement will be for four years. The first four slots will see the leasing of 10, 78, four and 11 batches of vehicles while the last three slots will be of two, 160 and 30 units.
The Treasury will require the firms leasing the vehicles to have service centres in at least five of the major towns listed as Nairobi, Mombasa, Kisumu, Eldoret, Nakuru, Meru, Kitale and Lodwar.
Those leasing the vehicles to the government will have to demonstrate that their centres can carry out minor and major repairs and overhaul on all vehicle systems and have well-stocked spares and components.
“Tenderers are required to provide a list of these centres and proof of ability to offer all these activities in all the required areas by indicating particulars of every center,” said Treasury.
The government launched the vehicle leasing programme in 2013 targeting efficient and cost-effective transport for public work-force instead of outright purchases.
The programme has seen the State lease over 8,000 vehicles for critical public service including provision of vehicles to disciplined forces and workers with field operations including the police and security personnel as well as ambulances.
Treasury’s disclosures in December last year showed the leasing model has cumulatively saved government Sh2.69 billion by addressing challenges such as fuel misuse, high maintenance costs and obsolescence of vehicles.
The programme provides the insurance sector with business worth Sh700 million in premiums annually, business worth Sh400 million to parts and accessory manufacturers and a market for oil products amounting to Sh2.2 billion annually.
The Treasury in October came up with draft rules to guide the process of purchasing, using and disposing of government vehicles in bid to tame the runway transport costs.
Statistics on budgetary allocation to government transport shows a steady rise from Sh8.6 billion in 2020/21, to Sh9.7 billion in 2021/22, Sh14.3 billion in 2022/23 and a further rise to Sh12.2 billion in the year ended June 2025.
