Firms partner to deliver 69-vehicle fleet for Vivo Energy

Several companies have come together to deliver a new fleet of 69 vehicles for oil marketer Vivo Energy Kenya, the distributor of Shell products.

The 48-month agreement  brought together Caetano Kenya, the authorised Hyundai dealer in Kenya that will manage the maintenance of the vehicles, financier Stanbic Bank and Heritage Insurance to insure the vehicles.

Fleet leasing solutions company RentWorks East Africa played a pivotal role in structuring the agreement.

Speaking at the handover ceremony in Nairobi, Vivo Energy Kenya managing director Peter Murungi said the partnership was important in supporting business continuity.

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“Today, we are entering into a strong business partnership that has enabled us to access 69 high-quality vehicles, which will enhance our operations at Vivo Energy Kenya,” he said.

Kenya’s car industry is facing various challenges that have led to the decline of new vehicle sales such as high import duties and taxes, which significantly increase the vehicle costs.

Others are aggressive competition from imported second-hand vehicles, restricted access to affordable vehicle financing that hinders the purchasing power of many potential buyers, and the frequent changes in government policies, taxation and import regulations that create market instability.

“Our ability to support large-scale projects such as this one is a testament to the strength and reach of the Caetano Group,” said Caetano Kenya managing director Aurelien Glay.

“We are proud that despite the current market challenges, we have delivered a fleet that meets the high standards of a company as respected as Vivo Energy Kenya.”

Stanbic Bank Kenya and South Sudan chief executive Joshua Oigara said the bank takes a “value-based approach” to supporting its clients.

“We are proud to be at the forefront of vehicle asset financing and leasing in Kenya and remain committed to fostering our relationship with all partners for continued growth,” he said. 

RentWorks East Africa executive director Johan Taljaard said the company is committed to delivering high-quality vehicles to meet the needs of businesses.

“We are thrilled to expand our partnership with Vivo Energy Kenya and provide them with top-tier vehicles that will drive their success.”

Heritage Insurance will provide comprehensive insurance coverage.

“At Heritage Insurance, we recognize that vehicles are more than just assets; they drive business success,” said Heritage Insurance managing director Rosalyn Mugoh.