Isuzu East Africa has signed a vehicle leasing deal valued at Ksh. 300 million for the acquisition of 50 Isuzu NQR 33-seater buses by Super Metro PSV Sacco.
Super Metro took possession of the first batch of 14 buses from Isuzu on a lease agreement facilitated by Co-op Bank Fleet Africa Leasing.
The transaction demonstrates the growing preference for leasing of vehicles by SMEs in Kenya rather than outright purchase. This is a means of cutting capital expenditure and maximizing efficiency. In July 2020, Isuzu East Africa announced a leasing deal supported by Co-op Bank Fleet Africa Leasing for PSV customers, to help revitalize their businesses that were disrupted by COVID-19 curfews and lockdowns.
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.
Speaking during the handover of the 14 buses, Isuzu East Africa Managing Director Rita Kavashe said the company was seeking more ways to make it affordable for customers to 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. 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,” said Rita.
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.
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.