Members of Metro Trans and Super Metro saccos will receive 100 mini-buses after Isuzu East Africa and Coop Bank announced a vehicle leasing deal.
In the asset financing deal, the two PSV saccos will get the 33-seater buses which retail at Sh5.3 million each.
The deal is expected to support growth and the return to business for PSV operators who have been severely affected by the recent Covid-19 lockdown and travel restrictions.
“The country has been experiencing an economic slowdown caused by the outbreak of Covid-19. Public transportation being among the sectors mostly affected,” said Wanjohi Kangangi , Isuzu East Africa’s Director Sales and Marketing.
Kangangi said the transaction was a good demonstration of local companies coming together to support locally manufactured products.
The lease agreement’s main advantage is that PSV operators do not need to pay a deposit to get a vehicle in their fleets.
It also offers an affordable and flexible hire to use over a 4-year leasing period.
“This agreement is an innovative way for the bank to better support PSV customers acquire the assets they need to grow their business,” said Robert Mbugua, CEO, Coop Bank Fleet Africa Leasing Ltd.
Receiving the first 25 buses, Mwangi Nduki, Chairman, Super Metro PSV Sacco welcomed the deal.
“We are delighted with the payment terms from Co-op Bank, and are optimistic these new Isuzu buses will boost our growth plans for the Sacco,” he said.
Isuzu EA is the largest local assembler of commercial vehicles with 44 per cent market share of new vehicles sold in the country.
Co-op Bank is ranked fifth in the banking sector, having created a niche in the SME sector, Cooperatives and public sector with an extensive client base to whom leasing is a welcome development.