Vivo Energy Kenya Managing Director, Polycarp Igathe with Simba Corp Managing Director, Adil Poppat  after signing the leasing agreement between the two companies.

Vivo Energy Kenya has sealed a mutual interest partnership with local diversified business group, Simba Corporation.

The deal, signed on Thursday, 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.

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.

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.