Ex-governor Muriithi Ndiritu warns successor not to end road equipment leases
Outgoing Laikipia Governor Ndiritu Muriithi hands a flag to his successor Joshua Irungu soon after a swearing in ceremony at Nanyuki Municipal Stadium on August 25, 2022. Mr Muriithi has asked Mr Irungu not to terminate leasing contracts.
Former Laikipia governor Ndiritu Muriithi has cautioned his successor Joshua Irungu against cancelling a Sh600 million road-building equipment leasing programme.
Mr Muriithi told the Nation that Mr Irungu’s administration was planning to scrap the scheme.
“There are conversations going on in the current regime meant to get out of the programme. If you decide to cancel the leasing programme, a cost will follow. The market is watching and will probably punish you,” Mr Murithi said.
He said all the leased equipment had stalled.
“I think the equipment should be operational before a decision is made to cancel the programme. Residents of Laikipia should not be denied services just because you want to make some changes,” Mr Muriithi said.
“This could be happening in other county governments too, but it should be understood that the government is a perpetual entity with all assets and liabilities.
“Whenever you break contracts, costs must be incurred. We would be heading in the wrong direction if we continue with the habit of cancelling contracts.”
Leasing programme
Mr Muriithi’s administration started the leasing programme in 2019, with Sh200 million injected through Absa bank, its financier.
Two graders, one excavator, five tipper lorries, two water bowsers and two rollers were leased to the county government.
In May 2021, Laikipia unveiled its second batch of road construction equipment, acquired under the programme for Sh400 million.
The second cohort consisted of a grader, an excavator, a compactor, a tipper lorry and a water bowser meant to upgrade 7,000km of roads.
“Leasing is the way to go if we have to build more roads, for if we had to buy this equipment in cash, we would have to part with hundreds of millions, which our budget cannot sustain, so we settled for leasing which is much cheaper,” Mr Muriithi said at the time.
Some Sh600 million was injected into the programme in the two tranches and is payable within five years. Rentco Company is the leasing firm. The programme includes maintenance and insurance for the equipment.
Under the ambitious “smart town” initiative rolled out by Mr Muriithi’s administration, the county government intended to upgrade 10 trading centres with better roads, green spaces, drainage and street lighting.
The towns include Doldol, Oljabet, Ol Moran, Karunga, Naibor, Matanya, Kimanjo, Kalalu, Pesi and Wiyumiririe.
