Kshs. 8 Billion Investment In Public Transport Modernization To Fund 150 New Buses
Kshs. 8 Billion Investment In Public Transport Modernization To Fund 150 New Buses
KCB Bank Kenya has partnered with County Bus Service (CBS) SACCO to finance the acquisition of 150 new buses as part of its ongoing efforts to expand support for the public transport sector.
The financing will enable CBS SACCO to enhance public mobility within Nairobi City County.
The transaction is part of Kshs.8billion financing agreement with Matatu Owners Association (MOA) in 2024 to empower investors in the public transport sector.
Under this arrangement, Matatu SACCOs have access of up to Ksh.5 billion in asset financing from KCB Bank to modernize and upgrade public transport vehicles.
“We are committed to providing financial solutions that enables businesses to scale while contributing to sustainable urban mobility. 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 Mr. John Okulo said during the flag-off ceremony of the first 10 buses.
These 10 buses mark the initial phase of the planned 150-bus acquisition by CBS SACCO to improve public mobility in Nairobi City County.
The funding has enabled CBS SACCO to modernize its fleet with efficient and environmentally friendly buses, reinforcing the Bank’s commitment to sustainable urban development and aligning with the United Nations Sustainable Development Goal (SDG) on sustainable cities.
CBS SACCO Chairman Peter Mwangi lauded the partnership, noting that the addition of these buses will significantly improve service delivery in Nairobi’s public transport sector.
Kshs. 8 Billion Investment In Public Transport Modernization To Fund 150 New Buses
“These new buses will not only enhance efficiency but also set new standards for safety and convenience in our sector. 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,” Mr. Mwangi said.
The new buses, were supplied by Simba Corporation Ltd and are equipped with advanced tracking devices pre-qualified by KCB Bank Kenya to enhance safety and operational oversight. They were auto-fitted by Dodi Autotech Ltd.
CBS SACCO will collect passenger fares digitally via KCB Vooma and KCB Fare pay solutions, ensuring secure deposits into their collection accounts.
This innovation reduces cash-handling risks and improves financial transparency for operators.
In October 2024, KCB Bank Kenya financed the Abuya Moyale Scania Buses and Kisii Classics to acquire Mercedes buses.
KCB plans to deepen its ecosystem approach to supporting the public transport sector. The Bank aims to collaborate with Original Equipment
Manufacturers (OEMs) such as Moja EV for e-mobility, BasiGo, Roam Buses, and other key players including oil marketers, cashless payment providers, and welfare group.
The partnership will enable the Bank to implement a financial literacy programs for transport crews.
The Bank has also partnered with NTSA, MOA and National Police Service (NPS) on a nationwide road safety clinic to improve road safety in Kenya.
