Co-operative Bank’s joint leasing venture with South African logistics firm Super Group is set to bag its second major deal to supply 412 trucks to the Kenya Police worth Sh2.2 billion in the current fiscal year.
Regulatory filings show the transaction is underway.
It will entail three leasing transactions towards financing the National Police Service (NPS) fleet through two leasing companies. Co-op Bank is the financier, with leasing specialists Rentco and Fleet East Africa — which is Super Group’s regional arm — arranging the leasing.
They will collaborate with motor vehicle dealers CMC Motors and Isuzu East Africa. Police sources confirmed the deal will be finalised soon. “The deal is almost complete,” said a senior official who sought anonymity due to the sensitivity of the matter.
President Uhuru Kenyatta’s move to turn to vehicle leasing to boost the capacity of the police service and other agencies has come as a boon for leasing firms, financiers and auto dealers.
“This is a big milestone in ensuring police mobility and safety in their duties,” Mr Kenyatta said in Nairobi last year
Vehicle leasing is fast gaining currency in Kenya with investors who opt for the model spared the headache of raising upfront costs.