County Government of Laikipia

Asset leasing can benefit can small businesses in Kenya grow. Although it is a relatively new concept in the country, all that Kenya MSMEs need to qualify for leasing keep their records well to enhance their credit rating.
The County Government of Laikipia became the first county to lease equipment for development of road and water infrastructure. At the national level, the government is lease police vehicle.
The Laikipia leasing program was made possible through the asset leasing company Rentco, the Absa Group through Barclays Bank Kenya as the financiers, and Toyota Kenya as the motor vehicle dealer.
On 7th November 2019, HE Governor Ndiritu Muriithi shared the experience of asset leasing at a dinner attended by tens of members of Nanyuki business community at Sportsman Arms Hotel, Nanyuki.
He said that leasing is the way to go especially for small businesses that do not have enough resources or those that do not want to tie their capital on assets.
A similar training took place in Nyahururu 8th November 2019 for the Nyahururu business community. The training are meant to help the Laikipia business community understand the concept of leasing and seize the opportunity to expand their businesses.
The private sector stands to benefit from asset leasing even more than government, said the Governor. He demonstrated to the participants the value of leasing to the public sector, and the enormous potential asset leasing has in spurring business in the private sector.
He cited the police motor vehicle leasing program, which has guaranteed 97 percent vehicle availability to the service, as an example of the benefits of vehicle leasing.
Ms Moraa Nyamache-Kubai, Business Development Manager at Rentworks Limited, said businesses have suffered stagnation or delayed takeoff due to owners committing large portions of their capital on asset purchase and thereby leaving very little to run the business.
She disclosed the flexible terms her firm offers for leasing equipment ranging those for transport, health, agriculture, IT, among other sectors. A prominent option is the RentCo Sale and Lease- Back where the client can sell the asset and lease it back for their use.
Asset leasing facilitates more cash flow to the business in that the owner is left with more cash to run the business even after acquiring the asset. The asset generates the much needed cash to service the lease installments and make the business stay afloat.
Representatives from Barclays Bank demonstrated the interesting financial products they have to offer to government suppliers. One of the interesting packages allows for the customer to take an unsecured loan by providing an invoice of the supply already made, and the cash flow in their bank accounts. This loan facilitates the supplier to make uninterrupted supplies by plugging the gap that comes when the supplier awaits payment. This exciting package is made possible by the government track record of paying its suppliers within a record 60 days.
The lease finance workshop in brought together government, the business community and the players in the leasing business. A pool of representative from the transport sector, real estate, financial institutions, building and construction and cooperatives were present. Also present were agriculturalists, education institutions, and visiting Kiambu County officials.