On 4th November 2020, Metrotrans Sacco, one of the leading PSV transport Saccos operating in Nairobi received 45 new buses at Isuzu East Africa with financing from Co-op Bank in form of a lease worth Kes 225 Million.
The lease will enable the Sacco to respond to increased demand in their existing routes, and to also serve their customers better by offering cashless payments enabled by technology company SWVL that allows users to make and track bookings through the SWVL app.
The buses were financed through Co-op 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 Saccomembers including drivers.
This empowers the Sacco members to own matatus which they would otherwise not have been able to acquire. Co-op Bank is the first bank in Kenya to offer leasing services to the matatu sector.
MetroTrans is one of Kenya’s leading transport Saccos, 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 Nairobi including Nairobi – Utawala, Nairobi – Kabiria , Nairobi – Kawangware and Nairobi – Kasarani – Mwiki.
They have also expanded their operations to Bomet. Speaking at the launch held at Isuzu Head Office in Nairobi the Chairman of MetroTrans Sacco, Mr. Oscar Rosana, lauded the partnership between Metrotrans Sacco and Co-op 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 SWVL to 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 function, the Director of Co-operatives Banking at Co-op Bank Mr. Vincent Marangu said Co-op Bank is the preferred choice for PSV companies and Saccos since they 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,” said Mr. Marangu.
“This year alone, we have approved financing for over 200 PSVvehicles worthSh870Million, through asset finance and leasing,” he added.