KCB set to invest Ksh.8 billion in public transport

The Kenya Commercial Bank (KCB) is set to invest Ksh.8 billion in the public transportation sector.

The investment is part of a deal between the bank and the Matatu Owners Association (MOA) in an effort to improve and upgrade public transport vehicles.

Matatu Saccos can now access up to Ksh.5 billion in asset finance from KCB bank following the signing of the agreement, in a deal that will see them pay upwards of 16 to 18 per cent in interest.

The financing arrangement will see KCB pay upwards of 80 per cent in vehicle purchases, giving a saving Sacco the much-needed liquidity for the business.

“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 said.

MOA, on its part, committed to ensuring that its members work to repay the facility without fail, further calling on the traffic department to ensure they operate without harassment, noting that a significant amount of time is wasted in traffic stops, particularly for long-distance operators.

Speaking on behalf of the Deputy President, Cabinet Affairs Principal Secretary Dr. Idris Dakoto highlighted the need to sanitise the public transport sector.

He called on matatu owners to work with government agencies to ensure the sector receives both administrative and policy support to optimise their operations. 

With the capital injection into the sector, matatu owners now say this will ensure the sector continues to create the much-needed employment.