Co-op Bank Leasing firm awarded Sh 890 million Government fleet deal
By Amos Njau
Co-operative bank’s recently-established firm dubbed Co-op Bank Fleet Africa Leasing Limited has been awarded a deal worth Sh890 million by the government.
The new venture is joint partnership between the bank and global leasing specialist Super Group based in South Africa which operates locally through a subsidiary known as Fleet Africa Limited.
The Sh 890 million maiden transactions is part of larger of 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.
Coop bank will finance the deal while Fleet Africa Leasing Limited will incorporate motor vehicle dealers Isuzu East Africa Limited to deliver the fleet made up of trucks, pickups and buses.
Speaking, Co-operative Bank Chief Executive officer Dr. Gideon Muriuki said that by embracing leasing as an alternative way of acquiring assets, the national Government has set the pace for counties as this will help to reduce expenses.
“Super Group Limited is an established global leader in leasing business operating in three continents and is listed on the Johannesburg and Sydney stock exchanges. This partnership between Co-op Bank and Super Group is mutually beneficial as it taps the synergies created by the joint venture,” Muriuki said.
Dr. Muriuki said 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.
Edna Kihara the Chairperson of the Leasing Association of Kenya was once quoted saying that Leasing is widely being seen a most cost-effective model of acquiring business assets
“Instead of spending all your money buying fixed assets, you can actually lease assets, you’ll be able to lease a lot more assets with the same amount of money,” she said.