NCBA signs Ksh. 1.2B Vehicle Rental Agreement with Kenya Police
NCBA Leasing LLP signed an agreement for the lease of 250 vehicles worth Ksh. 1.2 billion to the Kenya police.
In partnership with Toyota Kenya, NCBA Leasing has handed over the first 49 vehicles to the National Police Department and the remaining units are expected to be delivered in the first quarter of 2022. This is the second time the leasing company has provided vehicles to the Police Department. , the first date of 2018, when it provided 108 vehicles to the national police.
Under the lease, the government will pay vehicle rents on a quarterly basis. Toyota Kenya will train owners of prequalified garages in all counties in vehicle care and maintenance.
Commenting on the deal, Lennox Mugambi, Director of Asset Finance and Business Solutions at NCBA Group, said: “As a home of asset finance, we are delighted to partner with Toyota Kenya to improve mobility for people. police forces across the country. This partnership will go a long way in improving the security of all Kenyans. The government has massive plans to strengthen infrastructure, security, health and agriculture in the country. This has great potential for our rapidly growing rental business. ”
Mugambi added that the bank plans to engage in more partnerships with government agencies, parastatals and businesses to ensure efficient mobility.
In recent years, the government has turned to vehicle rental to build the capacity of police and other government agencies. Leasing allows individuals and organizations to use a vehicle for a specified period of time while paying rent while the dealership takes care of its maintenance. Leasing also avoids the large upfront capital costs associated with the purchase of vehicles.
NCBA Bank wishes to offer leasing support to its partners to foster economic development and job creation, by offering leasing options to MSMEs who often cannot access other forms of finance.