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The Nairobian

State moves to cut travel costs by 30pc

Business

By Nicholas Waitathu | Sep 15, 2014

Nairobi; Kenya: The Government will contract few agents to offer travel services to ministries, parastatals and State agencies before the end of the year. The initiative aims to cut the travel expenditure by 30 per cent. It will also ensure all the civil servants travelling abroad use the national carrier, Kenya Airways.

Transport Principal Secretary Nduva Muli said the Government will have a pool of agents to offer travelling services at competitive rates before December. "We spend between Sh3 billion and Sh4 billion to finance local and foreign trips of civil servants. By selecting a few agents, our aim is to reduce the travel expenditure by 30 per cent," said Mr Muli.

He was speaking at the sidelines of the transport stakeholders breakfast meeting in Nairobi last week. Muli said the process to recruit agents conforms to the Government's desire to enjoy quality services at consistent rates. "The process is at an advanced stage and we are working with line ministries and agencies so that we select the best. Beginning next year, we will have shortlisted the number of agents we want," said Muli.

The National Treasury, ministries of Foreign Affairs, East African Affairs, Commerce and Tourism and Public Procurement Oversight Authority are spearheading the move. The issue has seen travel agents, through their lobby, the Kenya Association of Travel Agents (Kata), accuse the State of scheming to cripple their business.

In a telephone interview, Kata Chief Executive Jackline Kimeto warned that the move will subject the travel industry to losses, leading to the closure of business.

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"The State's idea fails to support the spirit of sound competition and instead prefers to frustrate SMEs through market segmentation," said Ms Kimeto. But Muli defended the initiative, saying it will centralise travel services and minimise the costs.