Isuzu East Africa has entered into a Ksh.300 million vehicle leasing deal with Nairobi-based Public Service Vehicle, Super Metro for 50 mini-buses.
The Isuzu NQR 33-seater mini-buses acquisition by Super Metro are being touted as the SACCO’s expansion plan in an industry that generates about Ksh.300 billion every year.
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.
Isuzu East Africa 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.
The brand has attained strong leadership in this market, selling over 100,000 units since the first Isuzu vehicle rolled out of its Nairobi assembly plant in 1977. With over 15 models in its line-up, the Isuzu brand has dominated the new vehicle segment for eight years in a row since 2012, achieving a market share of 45.4 percent by end of 2020.
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. This is aimed at cutting costs, ensuring proper maintenance of vehicles and improving mobility in their daily operations.
Robert Mbugua, Chief Executive Officer, Coop Bank Fleet Africa Leasing Ltd also noted that the 4-year lease arrangement is an innovative way to support PSV customers grow their business.
“We are grateful for the impressive growth in business despite the challenging times, thanks to flexible payment terms under the lease arrangement business. Said the chairman of the super metro PSV SACCO Mr. Nelson Nduki while receiving the 14 buses.
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 is attributed to the loyalty and commitment of customers to isuzu to invest in products.