Simba Corporation in Sh161m vehicles supply deal

Simba Corporation, owners of auto dealer Simba Colt Motors, Thursday got a boost from a Sh161 million order for 46 Mitsubishi staff vehicles by Vivo Energy — which trades in Kenya as Shell.

The acquisition of the SUVs (worth Sh3.5 million per unit) is on an operating lease arrangement. The deal, signed Thursday in Nairobi, will see Shell access a four-year tailor-made vehicle leasing deal and an eight-year lubricants supply contract.

“Faced by a desire to minimise transport costs, leading local companies and public sector institutions are fast turning to leasing solutions that are proving to be cost effective,” said Polycarp Igathe, the Vivo Energy Kenya Managing Director, during announcement of the deal.

“Besides the conventional tax benefits, the vehicle leasing product at Simba features a maintenance component, which relieves fleet and corporate clients, such as Vivo, the burden of having to manage routine vehicle maintenance,” he added.

Mr Igathe said the decision to lease the vehicles was informed by an audit which ascertained that the vehicles met requirements.