The Kenya Commercial Bank (KCB) has announced a substantial investment of Ksh.8 billion in the public transportation sector as part of a collaboration with the Matatu Owners Association (MOA).
This initiative aims to enhance and modernize public transport vehicles in the country.
Following the agreement, Matatu Saccos (Savings and Credit Cooperative Organizations) will have access to up to Ksh.5 billion in asset finance from KCB.
The deal involves an interest rate ranging from 16 to 18 %. KCB will contribute over 80 % toward vehicle purchases, providing the Saccos with crucial liquidity for their operations.
“What gives us more comfort and which also the President of MOA has alluded to us, given that the Saccos will be guaranteeing these loans, we plan to even extend the repayment tenure to a longer duration,” Robert Mburu, KCB’s Head of Asset Finance stated.
MOA has committed to ensuring its members diligently repay the facility.
They also urged the traffic department to facilitate smooth operations, highlighting the time wasted during traffic stops, especially for long-distance operators.
With this significant capital injection, matatu owners anticipate that the sector will sustain and even expand its role in creating essential employment opportunities.
