This archive report was first published on 18 November 2021.
On November 18, 2021, Absa Bank Kenya PLC signed a significant tripartite financing agreement with CMC Motors Limited and Avenue Lease and Rentals to supply 240 vehicles to the National Police Service (NPS) under the government's vehicle leasing initiative.
Under the agreement, Avenue Lease and Rentals will lease the single cab Ford Rangers to the NPS for a four-year period. Absa will provide Ksh1.2 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 on Wednesday, 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.
According to Absa Bank's Country Credit Director Christine Mwai, the bank recognizes the impact of strategic partnerships on the economy and is excited to be the financing partner in this initiative. She added that the deal supports the Buy Kenya Build Kenya agenda, as the vehicles are assembled locally.
Avenue Lease COO Rutto Kipng'eno stated that the company provides bespoke and customized leasing products to both the private and public sectors in Kenya and Sub-Saharan Africa. He noted that the Police Leasing program has had a catalytic effect on the economy, 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.
