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Kenya Co-op bank gives Nairobi SACCO 45 buses

By James Wafula in Nairobi.

Fresh from winning the African  award as the best performing bank in the continent, Kenya’s Cooperative Bank has clinched a deal with  Metrotrans,  one  of  the  leading Savings  and  Credit Co-operatives in Kenya’s Transport sector.

This comes under a backdrop of sustained transformation of the banks services that have consolidated gains through its much effcient Soaring Eagle strategy based on meeting customer satisfaction  through efficient services. The bank that is the most digitised in East and Central Africa has been building on gains both at home in Kenya and neighbours South Sudan, Uganda, Rwanda and Burundi.

According to the investment deal the bank has finished financing  45 new buses at Nairobi based Isuzu East Africa through a  lease worth Kes225 Million.

The lease will  enable  the  Nairobi based Sacco  to  respond  to  increased  demand  in  their  existing  routes  and  to also serve their customers better through a partnership with technology company SWVL that allows users to make and track bookings through the SWVL app.

The buses were financed through Co-operative Bank’s leasing arm -Co-op Bank Fleet Africa. Under the leasing agreement, Metrotrans will lease the buses for a period of four (4) years after which they will be sold to individual Sacco members including drivers.  This empowers the Sacco members to to own matatus which they would otherwise not have been able to acquire.

.Cooperative Bank is the first bank in Kenya to offer leasing services to the matatu sector. MetroTrans  is  one  of  the  biggest  Transport  saccos  in  Kenya  with  investments  in  PSV transportation,  logistics  and  supplies.  The  Sacco  has  been  in operation since  2011  and currently  operates  51-seater,  33-seater  and  14-seater  matatus  on various  routes  within  and outside Nairobi County

.Speaking  at  the  launch held  at Isuzu  Head  Office  in  Nairobi  the Chairman  of MetroTrans

The banks group CEO Dr. Gideon Muriuki has kept restating the banks strategy of always listening to the customer needs in fast changing and dyanmic age that keeps advancing various customer products affordaably available at its more than 350 outlets.

The Metro  Sacco, manager Mr. Oscar Rosana,lauded the partnership between Metrotrans Sacco and Co-operative Bank that  enabled acquisition  of  the  new  fleet  of  buses,  which  will  significantly  boost the income of Sacco members.  “The acquisition of these buses is timely,  as it will improve the incomes of our members by addressing  the  increase  in  demand  we  have  experienced  in  recent  times.Furthermore, our partnership  with  SWVLto  provide  cashless  payment  solutions  is consistent  with  Government guidelines intended to minimise the use of cash in favour of cashless transactions in an effort to reduce the risk of spreading COVID-19.

Speaking  at  the  same  function, Co-operative  Bank’s Director  of  Co-operatives  Banking,Mr. Vincent  Marangu  said,  “Co-operative  Bank  is the  preferred  choice  for  PSV  companies  and Saccos  since  we  understand  their  business  model  very  well  and  have  the  right  solutions  to cater for their needs. We have a dedicated Transport and Housing Co-operatives department that  supports  over  900  transport  companies  and  Saccos with  working  capital,  payment  and collection  solutions  to  assist  them  effectively  manage  their  fleets.  This year  alone  we  have approved financing for over 200 PSV vehicles worth Kes 870Million, through asset finance and leasing. We are proud to be the first bank in Kenya to offer this service to matatus and look forward to more Saccos taking it up■

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