Christopher Podgorski of Scania (left) with the Transport Safety Authority boss Lee Kinyanjui. Photo/DIANA NGILA
Swedish bus and heavy trucks manufacturer Scania’s coming to
Kenya is set to earn the son of one of the founders of collapsed public
transport operator Akamba a big pay cheque.
Niaz
Nathoo, the managing director of Kenya Grange Vehicle Industries which
has been the exclusive franchise holder and reseller of Scania buses and
trucks in Kenya, has sold part of his assets, giving the Swedish
company exclusive control of the distributorship of its vehicles.
Scania
said the acquisition of Mr Nathoo’s assets as well as new investment in
the business cost a total of Sh2.58 billion, although senior vice
president for sales and marketing Christopher Podgorski declined to
disclose the amount paid to the Kenyan businessman.
10-YEAR CONTRACT
“The
(new) investment is a mixture of share and working capital, we are
buying all assets including vehicles already in stock, those in the
pipeline as well as repair kits and spare parts,” said Mr Podgorski.
“However,
we have not bought Kenya Grange’s facilities in Mombasa and Nairobi but
have instead leased them out on a 10-year contract,” he added.
Mr
Nathoo, 72, is the son of HassanAli Nathoo, one of the founders of
Akamba Roads Services. Kenya Grange Vehicle Industries has been
operational for the past 27 years.
The Nairobi
Industrial Area-based dealer will now be known as Scania East Africa
Limited. See below: A timeline of Akamba Bus services
However, Scania will still maintain Kenya Grange as its
franchise dealer in Uganda and Rwanda, home to two Kenya Grange
subsidiaries—both called Skenya Motors Limited.
BEFORE INDEPENDENCE
The
two subsidiaries were not part of the acquisition. The iconic Akamba
bus service was founded before independence, primarily operating on the
Machakos route before expanding to Mombasa, Isiolo, Taita Taveta and
thereafter going regional. However, the transport provider has since
gone into receivership.
In 1987, the Akamba family
formed Kenya Grange Vehicle Industries as a subsidiary, one which has
since borne two subsidiaries in Uganda and Rwanda.
Mr
Nathoo, who was working and living in UK during Akamba’s peak years and
formation of the subsidiary, came back to Kenya in 1995 with his wife,
leaving behind his two sons.
The electrical engineer by
profession then bought out Kenya Grange Vehicle from his siblings,
taking over the Scania franchise that had been ongoing since 1988.
“My sons are comfortable working in the UK and I am getting a bit old,” said Mr Nathoo, a University of Wales graduate.
“That is why I decided to sell part of the business to Scania so that they can continue the good work we started.”
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