Co-op Bank Fleet Africa Leasing Limited, a joint venture between Co-operative Bank and South African leasing firm Super Group will supply Kenyan government with vehicles worth over Sh890 million.
The deal is coming almost 18 months after the Supar Group won similar bid worth Sh404 million in August 2017 to supply the Kenya Police through its subsidiary Fleet Africa.
The transaction, which is part of a larger Sh2.2 billion deal, entails the financing and delivery of a fleet of 125 vehicles to the Ministry of Interior, the National Police Service and the Prisons Department.
The National Treasury plans to spend Sh12.8 billion on leasing vehicles for the National Police Service in the current fiscal year up from Sh8.1 billion last fiscal year.
Cooperative Bank chief executive Gideon Muriuki said they have partnered with an established global leader in leasing business operating in three continents and listed on the Johannesburg and Sydney stock exchanges.
"The leasing business provides an opportunity for the bank to better support customers to acquire the assets, technologies and equipment they require at the same time enable the bank diversify its income streams,’’ Muriuki said.
President Uhuru Kenyatta’s move to turn to vehicle leasing to boost the capacity of the police service and other agencies has come as a boon to leasing firms, financiers and auto dealers.
