Motor dealer DT Dobie and Co-operative Bank have entered into a financing partnership worth Sh1 billion that will enable institutions purchase or lease Mercedes-Benz buses.
Customers who qualify for the scheme will have the option to purchase buses with financing of up to 95 per cent or acquire more units through 100 per cent leasing, for an extended period of up to 60 months.
Schools and colleges can have payments correspond with school terms for easier cash flow management.
Co-op Bank Director of Corporate and Institutional Banking Jacquelyne Waithaka said the scheme is available to the bank’s customers as well as other clients who want direct acquisition of vehicles, or for leasing.
“The bank has made the terms flexible to accommodate micro, small and medium-sized enterprises, co-operatives, corporates, individuals and farmers, to support them retool their businesses as the economy re-opens,” she said.
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During the launch of the partnership at DT Dobie offices, DT Dobie Project Manager for Mercedes-Benz Buses Mathew Mbuko said 150 units of MB 917 and the bigger MB 1730 buses will be available for customers to buy or lease.
Schools and transport companies will have the option to decide the configuration of buses that suit them, ranging from 37 seats to the ultra-luxury coaches.
Leasing vehicles has become popular because the customer benefits from improved service by newer vehicles, easy budgeting due to the fixed monthly payments and is protected from inflation.
Co-operative Bank’s leasing arm, Co-op Fleet Africa, tracks and monitors the vehicles, deals with routine administration including maintenance, service and repairs and manages the fleet so that clients can focus on uninterrupted service.
“In recent years, Mercedes-Benz buses have become a common feature on Kenyan roads due to their smaller optimised engine that saves fuel, and they have longer service intervals which decreases downtime,” said DT Dobie.