Co-op Bank chief executive Gideon Muriuki. FILE PHOTO | NMG
Co-operative Bank plans to tap its customer base to attract new
business for the leasing subsidiary Co-op Bank Fleet, which it co-owns
with South Africa’s listed firm Super Group.
Chief
executive Gideon Muriuki said targeted transport solutions would enable
customers ease operational costs by leasing vehicles for operations when
the need arises and free monies for use in core business activities.
“This
partnership between Co-op Bank and Super Group will tap into the
synergies created by the joint venture to better support our customers
in asset acquisition, technologies and equipment,” said Mr Muriuki.
The
subsidiary now servicing its first Sh890 million leasing deal for
financing and delivery of a fleet of 125 vehicles to the Ministry of
Interior, said the new strategy would see private sector players offered
packages that reduce expenses while meeting daily transport needs.
Leasing
Association of Kenya Chairperson Edna Kihara said leasing eased
cash-flow challenges for firms to concentrate on core business while
allowing other firms to shoulder maintenance and repair costs for their
leased fleet.
“Instead of spending all your money
buying fixed assets, leasing the needed equipment is far much cheaper
and enables you to lease more equipment, hence higher production,” she
said.
Emerging trends show more firms and public entities are leasing
vehicles and equipment on monthly instalments, which is cheaper than
buying of assets.
Super Group will help to screen
customers, innovate products that respond market needs while targeting
SMEs, saccos and the public sector.
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