DCI to lease Sh510m Volkswagen Tiguan vehicles

Stanbic Bank Kenya, in a joint leasing venture with RentCo Africa and DT Dobie, delivered 50 sports utility vehicles to the Directorate of Criminal Investigations (DCI) in a deal worth Sh510 million.

The contract is a four-year partnership that will see the police service receive 111 Volkswagen Tiguans valued at Sh4.6 million each for deployment to DCI officers across the country.

“The vehicles we’ve received today (Friday) will go a long way in ensuring the smooth running of our operations,” said Daniel Muriuki, the DCI director of logistics.

Stanbic is the financier, with RentCo arranging the leasing and motor vehicle dealer DT Dobie supplying and servicing the SUVs.

“We are greatly honoured to partner with DT Dobie and RentCo Africa, as the financial partner, to support the National Police Service to enhance their operational effectiveness and efficiency in service delivery to the public,” said Charles Mudiwa, Stanbic Bank Kenya’s chief executive.

The vehicles are assembled locally at the Thika-based Kenya Vehicle Manufacturers (KVM), where DT Dobie owns a 32.5 percent stake.

“We are glad that the government has shown confidence in the Volkswagen brand and is supporting the call ‘Buy Kenyan Build Kenya’,” said Chris Ndala, DT Dobie managing director.

The government has since 2013 leased more than 3,000 police vehicles to cut costs and improve police mobility.

DT Dobie is also among companies benefiting from the exemption of value-added tax (VAT) and excise taxes for locally assembled vehicles among other concessions to assemblers to boost production and reduce the prices of automobiles.

RentCo Africa head Bosire Bogonko noted increased uptake of vehicle leasing by various government departments. “In today’s uncertain financial climate, leasing of movable assets stands out as a viable alternative, flexible and creative financing option enabling organisations to acquire today’s assets or equipment, at today’s price, but paid with tomorrow’s revenues,” he said.