The Kenya Commercial Bank (KCB) has unveiled a substantial investment of Ksh.8 billion in collaboration with the Matatu Owners Association (MOA), aiming to modernize the public transportation sector in the country.
As part of this initiative, Matatu Savings and Credit Cooperative Organizations (Saccos) will gain access to asset finance of up to Ksh.5 billion from KCB. The deal includes an interest rate ranging from 16 to 18%, with KCB contributing over 80% towards vehicle purchases. This injection of liquidity is expected to play a vital role in the operations of the Saccos.
Robert Mburu, Head of Asset Finance at KCB, emphasized the commitment to supporting the initiative, stating, “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.”
MOA has assured the diligent repayment of the facility by its members. The association also called on the traffic department to streamline operations, addressing concerns about time wastage during traffic stops, especially for long-distance operators.
With this substantial capital injection, matatu owners are optimistic that the sector will not only sustain but also expand, creating essential employment opportunities.