Co-op Bank starts rolling out matatus financed at Sh703 million

Co-operative Bank has launched a mega financing program for Kenyans looking to acquire public service vehicles. Over the past one week alone, Co-op Bank has rolled out 31 brand new 33-seater matatus.

These matatus are part of two multi-million deals through which the bank is financing the acquisition of public service vehicles for two Saccos.

In the first deal, the bank rolled out 21 matatus for the MetroTrans Sacco, marking the first phase of an 85-bus asset financing programme valued at Sh590 million.

In the second deal, the bank rolled out ten 33-seater buses for Raj Safaris Limited. These matatus are part of an asset finance deal for 20 buses worth Sh113 million. With financing from the bank, Raj Safaris has gone from leasing 15 buses two years ago to full ownership.

Under its asset financing programme, the bank is providing up to 90 percent financing with a 60-month repayment period. At the same time, the lender is also providing insurance financing and support for digital, cashless fare collection systems.

“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,” says Alex Mwanthi, the Head of Transport, Housing and Investment Cooperatives at the 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.”

The bank currently commands approximately 70 percent 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, professionalizing operations, and improving service reliability.

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Over the past months, the bank has broadened its asset financing package, including the financing of 60 brand new Forward Travellers Sacco buses worth over Sh313.5 million. The lender has invested more than Sh10 billion in the last few years to finance over 2,000 matatus to PSV Saccos and companies through leasing and direct hire purchase arrangements.

The bank has also been the force behind the financing scheme that provides a ninety-five per cent financing option for Isuzu N-series, Isuzu F-series and Isuzu pick-ups TFS and TFR Series in a partnership with Isuzu East Africa.