Co-operative Bank of Kenya and MetroTrans Sacco Ltd have unveiled 21 new 33-seater buses, marking the first phase of an 85-bus asset financing programme valued at KSh 590 million, in a move aimed at strengthening investment in Kenya’s public transport sector.
The rollout extends a partnership between the two institutions that spans more than a decade and reflects continued efforts to modernise and professionalise public service vehicle (PSV) operations across the country. The full fleet of 85 buses is scheduled for progressive delivery over the course of the year.
Kenya’s public transport system, largely anchored by matatus and buses, remains a critical driver of the urban and peri-urban economy. The matatu industry alone generates more than KSh 250 billion annually and serves about 70% of the population, according to data from the Kenya National Bureau of Statistics (KNBS). The wider Transport and Storage sector recorded growth of about 4.4% in the 2025 KNBS Economic Survey, underscoring the sector’s role in economic activity, productivity and daily mobility.
Under the new financing programme, Co-operative Bank is providing up to 90% asset financing with a 60-month repayment period, complemented by integrated insurance financing and support for digital, cashless fare collection systems.
“Public transport is not a side economy in Kenya; it is a core economic artery that moves millions of people to work, school and commerce every day,” said Alex Mwanthi, Head of Transport, Housing and Investment Cooperatives at Co-operative Bank of Kenya. “Our role is to ensure operators can access financing that reflects the real operating models of this sector and supports long-term, disciplined growth.”
Mwanthi added that the MetroTrans partnership illustrates a sustainable asset financing model built on repeat investment, fully serviced facilities and continuous fleet modernisation.
Co-operative Bank currently commands an estimated 70% market share in financing Kenya’s public transport sector, positioning it as the leading institutional financier of PSV and Sacco-based fleet investments. Its transport-focused financing has supported hundreds of operators in fleet renewal, operational professionalisation and improved service reliability.
The latest MetroTrans facility builds on earlier financing that saw the Sacco acquire 45 buses in 2020, a facility that has since been fully repaid, reinforcing the long-term sustainability of the partnership.
MetroTrans has also been among early adopters of electric buses in Kenya, reflecting a broader industry shift towards cleaner and more efficient transport solutions. While the current expansion focuses on conventional buses, the financing framework is expected to support future integration of low-emission and electric vehicles as sector economics and supporting infrastructure continue to evolve.
