Kenya’s leading commercial vehicle assembler Isuzu East Africa has announced a vehicle leasing deal valued at Ksh 300 million for the acquisition of 50 Isuzu NQR 33-seater buses by Super Metro PSV Sacco.
The Nairobi based public service transporter took possession of the first batch of 14 buses from Isuzu on a lease agreement facilitated by Coop Bank Fleet Africa Leasing Ltd.
This transaction demonstrates the growing preference for leasing of vehicles by Small and Micro Enterprises in Kenya rather than outright purchase as a means of cutting capital expenditure and maximizing efficiency.
In July 2020, Isuzu East Africa announced a leasing deal supported by Coop Bank Fleet Africa.
Leasing for PSV customers, to help revitalize their businesses that were disrupted by Covid-19 curfews and lockdowns.
Two Nairobi PSV Saccos, Metro Trans and Super Metro were the first beneficiaries with access to 100 Isuzu 33-seater buses on a lease or hire to use basis through Coop Bank Fleet Africa Leasing Ltd. Speaking during the handover of the 14 buses, Isuzu East Africa Managing Director Rita Kavashe said the automaker was seeking more ways to make it affordable for customers to easily access Isuzu vehicles.
“It is encouraging to note that there will be no deposit required in this financing model, which should go a long way in helping Super Metro PSV Sacco recover their investment faster,” said Rita. “The chassis is supplied by Isuzu, the body is built by Central Farmers Garage (CFG) and finance provided by Co-op Bank Fleet Africa Leasing, a classic example of how the “Buy Kenya Build Kenya” initiative can help revitalize our economy,” Rita added.
Isuzu East Africa Chairman Mr. Hiroshi Hisatomi noted the steady growth of the Sacco which now has a fleet of 170 units, all of which are Isuzu NQR buses.
“Your loyalty to Isuzu and commitment to invest in our products is a great show of confidence in the technology that has made Isuzu the number one automotive brand in Kenya,” he said.
On his part, Robert Mbugua, Chief Executive Officer, Coop Bank Fleet Africa Leasing Ltd said that the 4-year lease arrangements is an innovative way to support PSV customers grow their business.
“This is a cost-effective way for PSV Saccos to acquire 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.
In Nairobi, it is estimated that about 42% of the population walk daily, 48% ride a matatu and about 5% commute by private car. The bulk of the population relies heavily on public service vehicles.
While receiving the 14 buses, the Chairman of the Super Metro PSV Sacco Mr. Nelson Nduki said the leasing model has enabled the Sacco members create
employment for hundreds of youth in the transport business. “We are grateful for the impressive growth in business despite the challenging times, thanks to flexible payment terms under the lease arrangement,” he said.
Isuzu EA has been at the fore front of this model, having leased over 1,000 vehicles to the government, large corporates, and SMEs in the country.
This is aimed at cutting costs, ensuring proper maintenance of vehicles and improving mobility in their daily operations.