Monday, March 17, 2008
Motoring moment: asset finance personified
nice poster here from Lunch over IP on urban transport solutions
The traffic crunch in Nairobi has gotten worse in the last week since 1/3 of the city’s commuters had restrictions placed on their access to downtown Nairobi.
It’s fait to say that over ¾ of cars from KAP___ onwards (cars registered in the last five years) are financed with asset or bank loans - so they are a reflection of the amount of credit in the economy.
But the traffic crunch will continue unless some serious measures are taken as there are few new roads or new parking spaces coming up in the city
What are some solutions?
- Better public transport as the image above shows.
- Restriction on vehicle imports/registrations; But bad for the economy, encourage corruption
- Restrictions on asset finance lending; but bad for banks
- Restrictions on vehicle use e.g. only use vehicles ending with odd number on one day, even the next: but favors the rich (with more than one car) and will encourage fraudulent license switching
- The India way (as adopted by Uganda) and small town in Kenya which is to have motorbikes as taxis. This would be great for those who work in the upper hill area
- Car pooling, temporary parking meters, new capital city? The list is endless