Funding: CBS Sacco secures Sh8bn from KCB for 150 new buses
Commuter service operator CBS Sacco has entered a deal with KCB Bank Kenya to finance the acquisition of 150 new buses at Sh8 billion.
Additional passenger service vehicles will enable the firm to expand its transport services in Nairobi County.
The financing follows an agreement signed between the lender and the Matatu Owners Association (MOA) last year to empower investors in the public transport sector.
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In the deal, Matatu Saccos have access to up to Sh5 billion in asset financing from KCB Bank to modernize and upgrade public transport vehicles.
“This partnership goes beyond financing, it focuses on enabling the expansion of public transport with efficient and modern vehicles. We are achieving a dual purpose of supporting business growth while contributing to a cleaner, well-managed city,” KCB Corporate Banking Director John Okulo said during the flag-off ceremony of the first 10 buses.
The new buses, which were supplied by Simba Corporation Ltd. and are equipped with advanced tracking devices, were also auto-fitted by Dodi Autotech Ltd.
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“The funding from KCB enables us to meet our ambition to modernise our fleet with modern and efficient buses and to provide safer, more convenient transport for our passengers,” CBS Sacco Chairman Peter Mwangi added.
