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Co-Operative Bank Left Bitter After Losing Sh2.2B Deal To NCBA

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The clash between the two banks follows a recent deal by NCBA and Toyota Kenya to lease cars to Kenya police despite Cooperative Bank still servicing its 5-year deal with the police. The Co-operative Bank won a major tender to supply 412 trucks to the Kenya Police for 5 years

The Cooperative Bank of Kenya and the NCBA bank are locked up in a bitter business rivalry over a multi-billion shilling car lease agreement to Kenya police. Cooperative Bank has an existing Ksh. 2.2b lease deal to supply cars to the Kenya Police Service is accusing NCBA of trying to “hijack” the business. NCBA bank is said to enjoy a very strong link with President Uhuru Kenyatta’s family. 

This follows a recent deal by Toyota Kenya to lease police cars despite Cooperative Bank still servicing its 5-year deal. The Co-operative Bank won a major tender to supply 412 trucks to the Kenya Police for a period of 5 years. According to regulatory filings, the Co-op Bank leasing project was estimated to be worth Sh. 2.2 billion in conjunction with South African logistics firm Super Group.

Co-op Bank was the financier, with leasing specialists Rentco and Fleet East Africa arranging the leasing. Rentco and Fleet East Africa which is Super Group’s regional arm. They were to collaborate with motor vehicle dealers CMC Motors and Isuzu East Africa. Both car firms are also associated with the family of President Uhuru Kenyatta

But now the entry of Toyota Kenya backed by NCBA has complicated this deal said to have been brokered by powerful figures in government and a section of the board at Co-operative Bank.

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The deal involved three leasing transactions towards financing the National Police Service (NPS) fleet for 5 years. Co-op Bank was the financier, with leasing specialists Rentco and Fleet East Africa arranging the leasing. Rentco and Fleet East Africa which is Super Group’s regional arm. They were to collaborate with motor vehicle dealers CMC Motors and Isuzu East Africa. Both car firms are also associated with the family of President Uhuru Kenyatta.

Co-op Bank had said then that the leasing would be extended to matatus and farmers. “We are exploring further opportunities,” Co-op Bank group CEO Gideon Muriuki said. But Muriuki is said to have reacted with fury at the NCBA deal with Toyota Kenya. He accused ‘power brokers” and “traitors” on his board of sabotaging the car deal.


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