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    1.0.32

    Treasury to Slash KShs. 12bn Budget by Limiting Cars Used by Public Officials- Draft Policy

    Brian
    By Brian Nzomo
    - October 25, 2024
    - October 25, 2024
    Kenya Business newsPublic Policy
    Treasury to Slash KShs. 12bn Budget by Limiting Cars Used by Public Officials- Draft Policy

    Taxpayers continue to bear heavy costs as a result of government officials owning too many fuel-guzzling cars, prompting the National Treasury to draft a policy to rein in government-covered transport.

    • •In FY 2023, the government spent KSh 14.3 billion to cover government transport needs, a figure that rose from KSh 9.7 billion in FY 2022; the figure budgeted for 2024 is still high, at KSh 12.2 billion.
    • •According to the draft Government Transport Policy, 2024, each Cabinet Secretary will receive two cars, with the Principal Secretaries receiving only one state-allocated vehicle.
    • •Heads of Parastatals, chairpersons of State Corporations, and CEOs of Independent commissions will also receive one vehicle while senior cadre officers, members of parastatal boards, and commissioners of independent commissions will be required to use their own private vehicles and seek government reimbursement.

    “Official vehicles purchased for use by PSs, Accounting officers, Judges of the Supreme Court and the Court of Appeal, Director of Public Prosecution, Clerk of the National Assembly and the Senate, Heads of Constitutional Commissions and Independent Offices, Commissioners of Constitutional Commissions, Inspector-General of Police shall not exceed 2,400 cc for saloon cars and 3,000 cc for 4 × 4 utility vehicles,” the policy draft states.

    County Governors will receive two vehicles, while Deputy Governors and CECs shall receive one vehicle each. Other provisions include the fuel capacity for each allocated car. Cabinet Secretaries, Speakers of both houses of parliament, the Attorney General, and the Head of the Public Service will only use vehicles that do not exceed 2,600 cc for saloon cars and 3,000 cc for 4 × 4 utility vehicles.

    The Treasury will reimburse government officials who use private vehicles by allowing them to claim KSh 26 per kilometer for those using cars with 850 cc – 1050 cc fuel capacity, KSh 42 per kilometer for those with cars ranging 1050 cc – 1300 cc, and KSh 45 for cars between 1300 cc – 1500 cc. The government will only reimburse cars up to 1800 cc for KSh 58 per kilometer.

    Foreign Travels

    The Treasury will cap business class travel to senior government officials above job group R, the rest expected to use economy class. Priority for air travel by government officials will also be given to the National carrier, Kenya Airways.

    “Foreign travel applications and approvals for public servants shall be processed through the Foreign Travel Information Management System (FOTIMS) to ensure accountability and prudent resource use,” the policy states.

    A new agency called the ‘Government Fleet Management Department (GFMD)’ will be established to regulate government fleet and maintain efficiency of transport assets. This agency will oversee the acquisition, security, and the disposal of moveable government assets.

    The policy also notes that government saloon cars will only be disposed after 6 years from the date of delivery or after covering 160,000 kilometers. Heavy duty vehicles will only be disposed after covering 200,000 kilometers or 8 years of utilization. Government lorries and diesel vehicles have been accorded 10 years of use before disposal.

    The Treasury will also foresee a smooth implementation of EVs in government activities as part of a general effort to reduce carbon emissions. In supporting this endeavor, the government is set to construct 1,000 charging stations – 700 in urban centers and 300 along highways.

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