The Kenyan government is implementing a sweeping new policy aimed at drastically reducing the cost of its vast vehicle fleet, a move projected to save billions of shillings annually. The Government Fleet Management Department (GFMD) policy, unveiled by the National Treasury, introduces stricter regulations on vehicle allocation and usage across all levels of government, from national ministries to county administrations.
For years, Kenya has grappled with inefficient and costly management of its government vehicles. The lack of a centralized system, coupled with inconsistent regulations scattered across various circulars, has resulted in significant financial losses.
In his introduction to the draft, Treasury Cabinet Secretary John Mbadi outlined some of the obstacles facing the government vehicle sub-sector, stating, “Additionally, there is no centralized data repository for government transport assets, resulting in inefficient asset sharing among ministries.” He further highlighted the lack of tracking for vehicle purchases, maintenance, and fuel consumption.
“The consistent allocation of over Kshs. 10 billion annually since 2018/2019 highlights the ongoing need for effective reform,” Mbadi stated, noting that despite high expenditure – peaking at Kshs. 17.7 billion in 2016/2017 – service delivery hasn’t improved commensurately. Challenges include fuel misuse, high maintenance costs, and vehicle obsolescence.
The GFMD policy directly addresses these inefficiencies. It significantly reduces the number of vehicles allocated to top government officials. Cabinet Secretaries will now receive two vehicles each. Principal Secretaries, heads of parastatals, and Chief Executives will receive one vehicle each. Senior officers will utilize vehicles from a centralized pool, promoting shared resources and reducing overall fleet size. Commissioners and board members will use their private vehicles and claim reimbursement for official travel. A similar structure is implemented at the county level.
The new policy builds upon previous reform attempts, which were hampered by inconsistencies and implementation difficulties. A 2013 initiative, while aiming to address rising costs, procurement flaws, misuse, theft, and inefficient utilization, faced operational hurdles. The GFMD policy aims to rectify these shortcomings by creating a robust framework for government transport management. Beyond cost reduction, it also aims to enhance local vehicle assembly and stimulate economic growth.
The policy details procedures for acquiring, providing, maintaining, and disposing of government assets, including the use of private vehicles for official travel. It establishes a clear implementation plan, identifies key stakeholders, and incorporates a robust monitoring and evaluation framework.
In a departure from past reform efforts, the policy proposes the creation of a dedicated Fleet Management Department to oversee and coordinate all government fleet activities. As CS Mbadi writes in the draft document, “GMFD outlines detailed procedures for the acquisition, provision, maintenance, and disposal of government moveable assets, including the use of private vehicles for official travel. It also details an implementation plan, identifies key stakeholders, and establishes a monitoring and evaluation framework. Crucially, it proposes the creation of a Fleet Management Department to coordinate government fleet activities.”
GFMD’s vision is “World Class Fleet Management for Efficient Public Service Delivery.” Its scope extends to all government transportation, including vehicles from development partner programs and projects, and even livestock used for transport in some areas.
The policy acknowledges that high costs are driven by factors including ineffective procurement resulting in unsuitable vehicles, weak regulations leading to vehicle misuse, poor management of vehicles acquired through development partnerships, and the absence of a central coordinating body for fleet operations. Further contributing factors include fuel and spare parts mismanagement and theft, unequal asset distribution, and extremely low vehicle utilization (averaging just 48.8%).
The policy draws on best practices from countries like Malaysia, Australia, and Rwanda, adapting effective fleet management standards to the Kenyan context. It emphasizes modernization, safety, and evidence-based decision-making, anticipating the integration of technology-based solutions, such as geo-fencing, to improve tracking and streamline operations.
GFMD aims to create greater certainty and predictability in future amendments by addressing inconsistencies in existing regulations.
According to Principal Secretary Dr. Chris Kiptoo, “This policy which was subjected to rigorous public participation, will improve government transport service delivery, free up financial resources, streamline procurement, and optimize economies of scale through improved inter-agency coordination. It will also institutionalize a clear separation of roles within the transport function. Furthermore, the policy will curb escalating maintenance and overall transport costs, enhance fleet utilization, improve the safety of government officials, and ensure a responsible process for acquiring and disposing of transport assets.”
The overall goal, he says, is to achieve better value for money and cost-effectiveness through optimal vehicle allocation and utilization. The expectation is that the implementation of the GFMD policy will result in substantial cost savings and improved efficiency within the Kenyan government’s transport system.
The success of the GFMD policy hinges on rigorous implementation and consistent oversight.
While the projected cost savings are substantial, challenges remain. Addressing entrenched bureaucratic inertia, ensuring widespread buy-in from government officials accustomed to existing practices, and effectively utilizing technological solutions will be crucial for realizing the policy’s full potential.
Ultimately, the long-term impact of the GFMD policy will be judged not only by its financial achievements but also by its contribution to more efficient and transparent governance in Kenya.
