NCBA Leasing LLP has announced it has signed a deal that will see the leasing of 250 Vehicles to the Kenya Police. The deal is worth KES 1.2 Billion. NCBA Leasing in partnership with Toyota Kenya have handed over the first 49 vehicles to the National Police Service with the remaining units set to be delivered in the first quarter of 2022.
In 2018, a similar deal was announced back in 2018 with the company supplying 108 vehicles to the National Police Service.
NCBA says under the agreement, the Kenyan government will pay lease rentals for the vehicles on a quarterly basis. Toyota Kenya will train prequalified garage owners across the counties on how to service and maintain the vehicles.
Commenting on the agreement, NCBA’s Group Director, Asset Finance and Business Solutions, Mr. Lennox Mugambi said, “As the home of asset financing, we are pleased to partner with Toyota Kenya to improve mobility of the police force across the country. This partnership will go a long way in improving security for all Kenyans.”
Mr. Mugambi said the bank plans to engage in more partnerships with government agencies, parastatals, and corporates to ensure efficiency in mobility.
“The government has massive plans to bolster infrastructure, security, health, and agriculture in the country. This presents a great potential for our fast-growing leasing business,” said Mr. Mugambi.
The government has in recent years turned to vehicle leasing to boost the capacity of the police service and other government agencies. Kenya’s leasing market is dominated on the demand-side by government and large corporate customers.
Leasing allows individuals and organizations to use a vehicle for a fixed period of time while paying lease rentals as the dealer takes care of its maintenance. Leasing also helps avoid the upfront large capital expenditure in buying the vehicles.
NCBA Bank is keen to offer partners with leasing support to foster economic development and job creation, by providing leasing options to micro, small and medium businesses that often cannot access other forms of financing.