Kenya’s leading commercial vehicle assembler Isuzu East Africa has entered into a deal with Cooperative bank to give two matatu saccos access to one hundred 33-seater Isuzu buses.
Investors in Metro Trans and Super Metro Saccos will have access to Isuzu NQR 33-seater buses at a price of Sh5.3 million each, without the need for a deposit.
Valued at Sh530 million, this is the largest fleet delivery that the auto industry has managed to put together for the PSV sector.
The lease agreement will support growth and the return to business for PSV operators who have been severely affected by COVID-19 lockdown and travel restrictions.
During the hand-over ceremony for the first 25 buses to Super Metro PSV Sacco, Isuzu East Africa’s Director Sales and Marketing Wanjohi Kangangi said the initiative was prompted by the need to support the economic recovery measures.
“The country has been experiencing an economic slow-down caused by the outbreak of COVID-19. Public transportation is among the sectors that have borne the brunt of the pandemic.
The deal to the PSV Saccos offers an affordable and flexible hire to use, as and when needed vehicle ownership model.
Kangangi explained that the transaction was a good demonstration of local companies coming together to support locally manufactured products.
Robert Mbugua, Chief Executive Officer, Co-op Bank Fleet Africa Leasing Ltd said that the lease arrangement was an innovative way for the bank to better support matatu operators acquire the assets they need to grow their business.
“This is a cost-effective way for PSV Saccos to gain access to new vehicles, and then pay monthly or quarterly instalments against the cost of the vehicle as it continues to generate revenues for them,” he explained.