NCBA Bank has today released Kshs 600M towards the National Police Service (NPS) leasing deal in partnership with Isuzu East Africa.
The leasing deal will see NCBA handover 143 vehicles – 115 Double cabin pick-ups, 26 Isuzu SUV Mux’s, and 2 NQR buses.
Under the agreement, the government will pay lease rentals for the vehicles on a quarterly basis while Isuzu East Africa will provide service and maintenance through its vast dealer network across the country ensuring good uptime of the vehicles while in use.
NCBA’s Asset Finance and Business Solutions Group Director, Lennox Mugambi noted that the government’s plans to bolster the sector present a huge potential for the lender’s fast-growing leasing business, and given its benefits, the private sector is quickly adopting leasing as a mode of acquiring moveable assets.
“At NCBA, asset financing is at the core of who we are. We recognized that we cannot go at it alone and rely on our strong, longstanding partnership with Isuzu East Africa to support in the delivery of motor vehicles to the National Police Service.” Mr. Mugambi said.
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Since the inception of the motor vehicle leasing program back in 2013, NPS wishes to continue building operational and logistical capacity to deliver on its mandate regionally.
At the beginning of the year, NCBA committed to delivering around 400 vehicles totaling Kshs 1.8 Bn by the first quarter of 2022. An ambitious move, which has seen the lender lease more than 500 vehicles in collaboration with automotive dealers, like Isuzu, and its wider asset financing network.
“We are pleased to partner with Isuzu to improve mobility of the police force in the delivery of security services across the country. This partnership will go a long way in ensuring that service is efficiently delivered for all Kenyans,” concluded Mr. Mugambi.
The automotive sector in Kenya experienced a boost after the 2019 directive requiring all government ministries to buy locally assembled cars. The NPS leasing transaction will help the sector which was greatly and negatively affected by the Covid-19 pandemic.