Absa Bank To Give Ksh 1.2 Billion To National Police To Buy Cars
Absa Bank Kenya PLC has signed a tripartite financing agreement with CMC Motors Limited and Avenue Lease and Rentals to…
Absa Bank Kenya PLC has signed a tripartite financing agreement with CMC Motors Limited and Avenue Lease and Rentals to supply 240 vehicles to the National Police Service (NPS) under the ongoing government’s vehicle leasing initiative.
Under the tripartite agreement, the single cab Ford Rangers will be leased to the NPS for a four-year period by Avenue Lease and Rentals. Absa will provide KES1.2 billion in financing to Avenue Lease and Rentals to acquire the vehicles from CMC Motors who will also service and maintain the units over the four-year period.
The first 100 units were delivered to NPS today, with the remaining 140 units anticipated in December. The government established the motor vehicle leasing program in 2013, as part of security sector reforms aimed at increasing NPS’s operational and logistical capacity and capability.
Speaking during the handover ceremony at the CMC Motors Headquarters in Nairobi, Absa Bank’s Country Credit Director Christine Mwai said: “We recognize the impact that strategic partnerships have on our economy, our business as a bank, and the communities we operate in. We are therefore excited to be the financing partner in this initiative as it not only speaks to our purpose of bringing possibilities to life but also supports the Buy Kenya Build Kenya agenda seeing that these vehicles are assembled locally.”
On his part, Avenue Lease COO Rutto Kipng’eno said: “We provide bespoke and customized leasing products to both the private and public sectors in Kenya and Sub-Saharan Africa, and we are pleased that the government has entrusted us with such a significant transaction, which reflects our expanding reputation as a locally owned firm. The Police Leasing program has had a catalytic effect on the economy through creating both horizontal and vertical multiplier effects, in addition to enhancing security leading to a conducive business environment.”
Absa is participating in the government leasing scheme for the second time; the first was in 2018 when the bank supported the supply of 100 units to NPS through Avenue Lease and Rentals.
“We are prepared and ready to continue partnering with the government and the private sector through such initiatives and we are proud about the opportunity to partner with Avenue Lease and Rentals and the National Police Service,” added Christine.