Public vehicles on sale at throw-away prices

About 2,000 Government vehicles earmarked for sale under a reformed transport system are being sold off at incredibly low prices, the Nation can reveal.

One the cars is said to have been sold for as little as Sh500. Most of the vehicles already sold were bought by well-connected individuals and companies through questionable deals.

The cars are being auctioned in line with a transport policy announced by the then Finance minister Amos Kimunya during the 2006 Budget speech.

The sale was expected to save the Treasury about Sh1.3 billion per year in fuel and maintenance costs.

Valuation experts

But the Nation, through interviews with private valuation experts, has established that the vehicles were grossly undervalued before being sold.

The valuers described the prices as a “major rip-off”, which “should not be allowed to continue”.

A Range Rover vehicle bought at Sh10 million in 2003 has been put up for sale at Sh1.5 million. Independent valuers said it should sell for at least Sh5 million due to depreciation.

The car had no mechanical problems and is only described as “excess” by the report of the board of survey on stores, which made the valuations.

Another vehicle, a Toyota Land Cruiser bought in 2002 at Sh10 million is being sold at Sh1 million, although the private valuers said it was worth Sh4.2 million.

Another car, a Sh6 million Land Cruiser bought in 2004, is set to be sold for Sh600,000 in the open tender advertised in May.

Yet another car of similar make bought in 2000 at Sh6 million has been earmarked for sale at Sh1 million. The three vehicles were in good condition and were only being sold to comply with the Kimunya directive.

Sources said at least 1,210 cars have been put up for sale by public auction, with many of them being grossly undervalued “because the bosses were selling to themselves”.

Valuers told the Nation that there was no way the vehicles’ value would have depreciated at such high rates in such a short time.

Most of the vehicles had been undervalued by up to four times, they said. One of the valuers, who asked not to be named, said the vehicles had been stored in good condition since they were surrendered by various ministries in 2006.