Co-op, Toyota targets PSV saccos in new partnership

NAIROBI, KENYA: Co-operative Bank and Toyota Kenya have signed a partnership deal to enable the Bank’s customers in the transport business to buy the Toyota Hiace “New Shark” Matatu.

The joint financing scheme is primarily targeting the PSV Saccos where the Bank commands 95 percent of the segment. The joint scheme has two options; zero percent interest rate for a 50 percent financing, payable in 12 months or 14 percent interest rate for 80 percent financing payable in 48 months. However, both options will require a 1 percent commitment fee and comprehensive insurance cover with the bank interest noted. The objective is to accommodate customers for both short term and long term facility financing.

The changing market dynamics has pushed the demand for new 14 – 16 seater matatus for long distance travel and high capacity buses for short distance travel such as town services. Toyota Kenya introduced the new 16 seater Toyota Hiace model targeting intercity PSV Saccos and companies.

“We developed this model in response to the customer feedback with regard to PSVs. Research showed that customers preferred low capacity buses for long distance travel as they take a shorter time to fill up but the biggest challenge with them is on-board comfort and safety. The Toyota Hiace is safer, more comfortable and more profitable for business owners.” said Mr. Peter Wanjala, Toyota Kenya Corporate Strategy General Manager.

Speaking during the launch of the partnership, Co-op Bank Director for Retail and Business Banking, Mr. Maurice Matumo said, “With this partnership we will enable customers to purchase new units instead of used ex-Japan units guaranteeing more profits, less fuel, less downtime and a 3-year/100,000km warranty on the vehicle.”