Local companies and the public sector lease solutions to minimise transport costs
Vivo Energy Kenya, has sealed a mutual interest partnership with local diversified business group, Simba Corporation. The deal signed will see Vivo Energy Kenya, access tailor made vehicle leasing solutions from Simba Corporation.
Alongside the partnership, Vivo Energy Kenya, has been retained by Simba Corp as the exclusive lubricants supplier for the upcoming Simba Corporation Westlands Service Centre. Construction work, for the new
Simba Corporation Westlands Service Centre is currently progressing well. Vivo Energy Kenya projects that the facility will provide a supply opportunity for more than 100,000 litres of assorted Shell lubricants and automotive oils.
Simba Shell fueling card
At the same time, the two firms, have also announced the unveiling of the Simba-Shell Fuel Card, a co-branded, value filled loyalty card for customers who purchase vehicles from Simba Corporation. Customers taking delivery of a new car from Simba Corporation’s automotive subsidiaries will also receive a complementary Simba-Shell Fuel Card, loaded with a credit value to fill their fuel tanks.
Speaking at the signing ceremony of the four year leasing and eight year lubricants supply contracts, Vivo Energy Kenya Managing Director, Mr Polycarp Igathe, said that the partnership has been inspired by the firm’s commitment to maintain world-class business management principles.
While describing the partnership as a win-win position for the two firms, Igathe, who was flanked by Simba Corp Group CEO Mr Adil Popat, disclosed that Vivo Energy Kenya has signed up for the Simba Corp Leasing product, to access 46 Mitsubishi ASX staff vehicles on an operating lease arrangement.
By adopting a Simba Corp operating lease product for its staff transport solutions Igathe noted that Vivo Energy Kenya will enjoy significant cost benefits. He added that the launch of the Simba-Shell Fuel Card will also provide the two firms with a convenient platform to enhance their customer loyalty reward offering.
Commenting on the agreement Adil Popat added that all the vehicles leased out by Simba Corporation to Vivo Energy Kenya will feature top of the range security and fleet management systems to guarantee customer satisfaction and safety as part of the firm’s strategy to offer a full range of transport solutions.
Local companies lease solutions to save cost
Faced by a desire to minimise transport costs, leading local companies and public sector institutions are fast turning to leasing solutions which are proving to be cost effective.
Besides the conventional tax benefits, the vehicle leasing product at Simba Corp features a maintenance component, which relieves fleet and corporate clients, such as Vivo Energy Kenya, the burden of having to manage routine vehicle maintenance.
“Essentially, this Simba Corp Vehicle Leasing product is tailor-made to the needs of Vivo Energy Kenya and will allow them to concentrate on their core business.” Said Popat.
As part of Simba Corp’s corporate expansion strategies, Popat confirmed that the firm will continue to develop tailor made motor vehicle fleet leasing solutions for institutions seeking to take advantage of the recent Government efforts to make leasing easier and cheaper for local public and private sector organisations.
Through leasing, companies’ gains include off balance sheet financing, elimination of non-core capital expenditure and optimisation on tax expense. Public and private sector organisations opt to lease motor vehicles as it eliminates the risks associated with vehicle resale values and ensures certainty of costs. It also minimises the need for borrowing through overdrafts and related interest costs.