The Co-operative Bank of Kenya and South Africa’s leasing company, Super Group, reaffirmed their commitment to deepen their partnership in enhancing the local leasing business.
According to Edna Kihara, the Chairperson of the Leasing Association of Kenya, “instead of spending all your money buying fixed assets, you will be able to lease a lot more assets with the same amount of money,” adding that one’s way of managing cash flows is the next big step in any given business.
Super Group and Co-operative Bank have now formed a joint venture that is called Co-op Bank Fleet Africa Leasing Limited that is set to revolutionize and modernize the leasing business in the country.
According to the two partners, the venture aims at long-term partnerships and joint ventures to sustainably support growth, building world-class competencies in the supply chain, fleet management, and leadership, and providing customers with innovative leasing solutions.
Co-op Bank Fleet Africa Leasing Limited, known in short as ‘’Co-op Bank Fleet’’ has within a short time since its establishment moved to stamp its presence in the leasing space, is a joint venture of two major players who bring to the table complementary capabilities in leasing.
Super Group of South Africa delivers its proven expertise in customer screening, product structuring, and risk management as Co-op Bank makes available its excellent client base to whom leasing is critical such as SMEs, Co-operatives and the Public Sector.
“Co-op Bank Fleet’’ already got off to a roaring start by concluding its first leasing deal worth over 890 million shillings in January 2019.
The maiden transaction, which is part of a larger 2.2 billion-shilling deal, entails the financing and delivery of a fleet of 125 vehicles to the Ministry of Interior.
The Co-operative Bank was the financier, with Co-op Bank Fleet arranging the leasing in collaboration with motor vehicle dealers Isuzu East Africa Limited who are to deliver the fleet made up of trucks, pickups, and buses.
Super Group Limited is an established global leader in leasing business operating in three continents and is listed on the Johannesburg and Sydney stock exchanges.
“This partnership between Co-op Bank and Super Group continues to deliver mutual benefits as it taps the synergies created by the joint venture,” said Co-op Bank Group Managing Director and CEO Dr. Gideon Muriuki.
Leasing is gaining traction in Kenya with the government setting the pace notably by opting to re-tool, equip and modernize public institutions by way of leasing.