Co-operative Bank of Kenya and MetroTrans Sacco Ltd today announced the release of 21 new 33-seater buses, marking the first phase of an 85-bus asset financing programme valued at shs590 million. The rollout extends a decade-long partnership between the two institutions and forms part of ongoing investment in Kenya’s public transport sector.
Kenya’s public transport system, anchored largely by matatus and buses, is a critical pillar of the country’s urban and peri-urban economy. The matatu industry generates over sh250 billion annually and serves as the primary mode of transport for approximately 70% of Kenyans according to Kenya National Bureau of Statistics (KNBS) data. The sector operates within the broader Transport and Storage category, which, according to the KNBS 2025 Economic Survey, recorded growth of approximately 4.4%, underlining transport’s continued importance to economic activity, productivity, and daily mobility.
Under the new programme, Co-operative Bank is providing up to 90% financing with a 60-month tenor, alongside integrated insurance financing and support for digital, cashless fare collection systems. The full fleet of 85 buses will be rolled out progressively over the course of the year.
Co-operative Bank honoured for leadership in cooperative banking at 2024 ushirika day
“Public transport is not a side economy in Kenya, it is a core economic artery that moves millions of people to work, school, and commerce every day,” said Alex Mwanthi, Head of Transport, Housing and Investment Cooperatives at Co-operative Bank of Kenya. “Our role is to ensure operators can access financing that reflects the real operating models of this sector and supports long-term, disciplined growth.”
He added: “This partnership with MetroTrans demonstrates what sustainable asset financing looks like in practice, repeat investment, fully serviced facilities, and continuous fleet modernisation. That is the model we believe will define the next phase of Kenya’s public transport evolution.”
Co-operative Bank commands approximately 70% of the market share in financing Kenya’s public transport sector, positioning it as the leading institutional financier of PSV and Sacco-based fleet investments. The Bank’s transport-focused financing model has supported hundreds of operators in renewing fleets, professionalising operations, and improving service reliability.
The current MetroTrans facility builds on a relationship that dates back over a decade and includes earlier financing for 45 buses in 2020, which has since been fully repaid, reinforcing the sustainability of the partnership model.
MetroTrans has also been among early adopters of electric buses in Kenya, reflecting broader industry movement toward cleaner and more efficient transport systems. While the current fleet expansion focuses on conventional buses, the financing framework creates a platform for future integration of low-emission and electric vehicles as sector economics and infrastructure continue to mature.
