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    Leasing firm rolls out electric and solar vehicles

    VAELL Staff celebrates Electric Tuk-tuk Arrival

    UTU Electric Tuk-tuks arrive at the VAELL Yard at Buffalo Mall, Naivasha – Kenya.

     

    The firm is involved in leasing and selling new solar and electric powered automobiles dubbed ‘Utu’ distributed by its partner brand: It’s Electric Limited which is a dealer of modern electric vehicles (EVs) and charging stations. This comes in as the Kenyan government seeks to introduce electric bus units for the Nairobi capital BRT system.

    Installation of solar and electric vehicle charging stations

    The leasing firm has already installed solar and electric vehicle charging stations in various hubs, more notably a new charging port at the Buffalo Mall in Naivasha, where the lessor is headquartered.  Naivasha is renowned worldwide as Eastern and Central Africa’s clean energy capital with renewable electricity at its peak in the region. The firm is set to install more solar and electric charging stations in various places around the country for the public convenience such as residential buildings and shopping malls.UTU CB1 MODEL TUK-TUK

    Speaking while receiving the recent batch of electric and solar automobiles that included Saloon cars, Motorcycle and Tuk-tuks from China, the firm’s Group Head of Finance, Ms. Catherine Mutua said, “the contest against environmental pollution is of uttermost urgency and we need environmental vanguards ready to go the extra mile at this initial adoption and transition phase. As we are setting the pace and leading the way, we are planning to invest at least Kes. 2 billion in the next few years to spur the uptake of EVs especially through our asset finance programs. As we speak we have already injected Kes. 100 million in importation of the eco-friendly automobiles and some have already been shipped and are in our yards ready for uptake. In the next 36 months we are looking at having about 2,000 units of electric and solar powered automobiles here for the Kenyan market, and we will also cascade the same in other countries we operate in such as: Tanzania, Uganda, Zambia, Rwanda and DRC.”

    VAELL Honored for its innovation

    Due to its various innovations the firm has been honored by various awards including the Key Industry Leadership recognition program dubbed ‘Pacesetters Awards Kenya’ organized by Jubilant Stewards of Africa (JSA) which recently honored the firm for setting the pace in Electric and Solar automobiles.

    Electric Vehicles are much cheaper to run based on fuel costs alone. When maintenance costs are factored in, going electric starts becoming a uniquely more attractive option, this because; brake systems tend to last longer than on conventional vehicles, and electric vehicles (EVs) have fewer fluids to change, and far fewer moving parts to maintain. As the globe grapples with climate change, carbon emissions, low-level motorization and increased congestion, Kenya is set to shift the paradigm through electric vehicles.

    VAELL advocates for incentives to spur the uptake of EVs

    The regional lessor VAELL has been in the forefront advocating for incentives to spur the uptake of EVs.  Earlier the firm asked the Kenyan government to evaluate the incentives offered, to encourage the use of EVs in the reduction of pollution and to help combat climate change. The Naivasha headquartered lessor suggested a 100% tax exemption for electric automobiles minimizing the price gap with conventional vehicles. These inducements apply to the local batteries and car assembly, importation and installation of EVs and their infrastructure.UTU OB1 MODEL TUK-TUK

    With the adoption and production of electric vehicles (EVs) taking off globally due to improvements in technology and the declining cost of lithium-ion batteries, the African continent now has a better opportunity to unlock the full potential of electric mobility. Kenya is well set to become the region’s hub for electric vehicle solutions and assembly, with major online cab hailing brands in the country gearing towards EVs.

    Kenya’s position as a global leader in renewable energy, its wide technological adoption, and the government’s push for electric vehicles through friendly policies are a major boost for EV uptake and early adoption. Over 70% of Kenya’s electricity comes from renewable energy today. This means in the global push to actualize electrified transit in the world, embracing electric vehicles early will be of greater impact for the country.

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    Bumper Friday, Car Sale Success!

    vehicle-leasing-kenya-tanzania-rwanda-ugandaAugust saw a banner month for Quipbank with a successful inaugural car sale. Dubbed bumper Friday, the event held on Friday, August 5th 2016 aimed at off-loading ex-lease vehicles.

    The highly anticipated sale was hosted at the Quipbank center on Mombasa road and attracted a considerable list of visitors keen on jumping on the offers and with deals starting from Ksh. 500,000 eager clients were quick to snap the cars on offer. Top cars that attracted buyers interest during the sale were Toyota Prado and Land cruiser which got multiple offers.

    Apart from Quipbank’s ex-lease vehicles, there were also cars from different sellers including insurance companies, financial institution and car rental companies that participated in the car sale. A range of vehicles from different top brands were featured including Nissan, Toyota, Mitsubishi and Ford. The sale not only brought to the yard a whole new audience, improving Quipbank’s visibility, but it also managed to rope in Ksh.10 million from sales.

    Speaking after the event, Jennifer Syombua, Quipbank General Manager said, “It was incredible to witness the charge in atmosphere at our center during the event. We made great sales by the end of the day, a testament to the great reception we received. We are currently scheduling another car sale in Uganda.”

    So If you are in the market for a new car in Uganda mark the date, November 14th and 15th 2016 and like our social pages to get updates.

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    Vaell seeks to lower healthcare cost with equipment leasing

    medical-vertinary-dentals-equipment-leasing-kenya-uganda-tanzania-rwandaVehicle and Equipment Leasing Limited (Vaell) has launched Healthcare Equipment Leasing Limited (Heall), a leasing solution targeting private hospitals and clinics as well as mid-level government facilities.

    The solution is expected to lower the costs of medical equipment.

    “It costs Sh9,000 for dialysis in a public hospital like Kenyatta National Hospital and between Sh9,000 and 15,000 in private hospitals. We lease out dialysis machines under Heall for Sh110,000 a month.

    “Most hospitals can afford to pay for it in two days from their client billings,” says Paul Njeru, Vaell regional managing director. A scanner for pregnant women costs Sh60,000 to lease per month and there is no reason why every gynaecologist shouldn’t have one, he adds.

    Mr Njeru says the inefficiencies in the health sector should not be used to penalise the sector by denying it access to credit which in turn would make life-saving equipment readily available in more health facilities thereby reducing queues in hospitals.

    Vaell hopes to tackle this problem by designing a product tailored to the specific needs of doctors and health facilities as well as educating the sector on the benefits of leasing as opposed to buying equipment.

    The latter involves a huge capital investment and places maintenance of equipment solely in the hands of the health facility. With leasing, the monthly costs are affordable and doctors who qualify will sign a maintenance agreement with the supplier which is subject to renewal after a mutually agreed period.

    Vaell has partnered with leading medical equipment suppliers in the region to help the firm educate the health sector on the benefits of leasing.

    The 10-year-old company deals with both vehicle and equipment leasing and has subsidiaries in Uganda, Tanzania, Rwanda and Zambia, with plans to expand to Mozambique and Malawi. Vaell has a fully-fledged government consulting division and has 60 employees — 40 in Kenya and 20 in the region. Ninety-five per cent of its clients are big corporates.

    “We’re heavy in cement, beverage and telecoms sectors across the region. These three comprise our largest customer base,” says Mr Njeru.

    Vaell leases brand new showroom vehicles at Sh60,000 a month which is way lower than the average cost of hiring a car which is around Sh3,000 per day (Sh90,000 per month). The company plans to launch a Sh10,000 rental in the next six months targeting both the retail and corporate markets.

    A key challenge in the retail market is getting funding. “Financiers insist on corporates because the risk is very high,” he says adding that competition from used cars is another challenge. “People argue they can pay Sh75,000 and own a vehicle for an extra Sh15,000 a month…Some markets transform slowly, others transform fast and you can’t push the market,” says Mr Njeru.

    Vehicle leasing is important for the company and is the source of regular clients but equipment leasing is where Vaell adds more value.

    “We get a wholesome relationship where we end up not just doing equipment but a whole lot more,” says Mr Njeru. In the last year, the company has gone into the manufacturing sector in a big way and its largest project was fitting an entire packaging factory end to end at a cost of Sh500 million. This helped double its 2014 revenues which hit Sh1.1 billion up from Sh500 million in 2013.

    “We have requests to fit factories all the way up to Madagascar and it’s an exciting space for us to engage the manufacturing industry and bring the benefits of leasing to that sector which has traditionally relied on either self-finance or bank tied equity financing,” says Mr Njeru.

    This article first appeared on the Business Daily Africa website. (Tuesday Sep 1,2015 )

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    Why leasing option is good for country and counties too

    kenya-government-vehicle-lease-vaell

    On February 23, governors, in an open letter to the Health secretary, expressed reservations over the proposed managed equipment services promised to counties by the national government.

    They said the deal was opaque and hence a few issues needed clarification. Granted, I don’t hold brief for the CS.

    Further, although I am a professional with a Kenyan leasing firm, our firm did not participate in the said tender because we were technically side-lined in favour of international companies.

    While I share some of the reservations raised by the governors, I am not well placed to respond to the concerns before the office addressed does so.

    However, the letter has underlying tones that create the impression that leasing is not a financially viable model for asset acquisition and should only be embraced “where the public sector comparator proves that this service cannot be accessed through the normal government purchase system.”

    Leasing is a novel concept in Kenya with corporates being early adopters of what is globally a popular phenomenon.

    Still, to many it remains a mystery, an enigma. Here is the reason why – leasing loosely translates to “renting”. We live in a society which has historically believed that “owning” makes more sense than renting.

    Hence, it makes more sense to own a house than to rent one and to buy a piece of land than to rent it. Such reasoning is not out of place.
    Both houses and land are assets that increase in value and hence they are good stores of value. Thus, buying them today makes sense because you can be assured that the value of the assets will beat inflation.

    If one bought a car or refrigerator today, it will depreciate in value in future. This makes poor storage of value. What makes such assets to depreciate in value is the fact that they have a limited life cycle.

    Also, new variations and improvements are generated often, hence the asset becomes obsolete in time. Many people make the mistake of simply looking at the initial capital outlay when buying an asset. This is a small portion of the cost of the asset in its long term use.

    To better understand how to make a better financial decision on asset acquisition, it is important to adopt a tool called Life Cycle Costing. This is the valuation of the total real cost of an asset over its useful life, or, during a lease, over the tenure of economic viability.

    The operating lease, which is a pure rental, should have basic cost and accounting principles. I will mention only two key principles.

    First, outside the cost of finance, you should not bear more than 90 per cent of the purchase value of the equipment in the primary rental period.

    The primary rental period is the period in which after the lease ends, you can walk away without any obligation. However, the purchase value is not always the purchase price.

    An item imported for you will have a lower purchase price to value should it be valued locally. This is the principle behind why a directly imported ex-Japan car is cheaper than a similar locally purchased one.

    This article first appeared on the Business Daily Africa  website. (Friday, Feb 26 2015 )

     

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    Vaell overcomes challenges to expand

    about-usWhen Vehicle and Equipment Leasing Limited (Vaell) emerged second during the Top100 SMEs Survey sponsored by the Business Daily and consultancy firm KPMG, it marked the success of a firm that took nearly a decade to come of age.

    Vaell started from the belief that you don’t have to own an asset, you can lease it.

    The company has now grown to become a powerhouse in the region targeting both corporate and government agencies that lease excavators, tippers, wheel loaders, breakers, graders, drills and compressors.

    Its clients include Haco, Telkom Kenya, Coca-Cola, ARM Cement, BAT, and Bamburi among others.

    “Vaell is an independent asset leasing, maintenance and consulting company. We have a comprehensive network with fully-ledged subsidiaries in five countries; Kenya, Uganda, Tanzania, Rwanda and Zambia and plans are underway to venture into 30 African countries by 2018,” said Mike Mulili, the managing director of Vaell.

    He says the desire to enter into business was inspired by the need to shift from ownership of assets to acquiring equipment through leasing, a move that has since been widely adopted in developed countries.

    “We started off in Kenya. Then expanded our operations in four other African countries that include Uganda, Rwanda, Zambia and Tanzania to meet demands from both multinational and local clients venturing into new areas,” said the company without disclosing the initial capital.

    Vaell started with 10 employees and has since grown its workforce to 50.

    No company rides to the success path without facing challenges. Mr Mulili says lack of awareness about the benefits of leasing and competition from commercial banks are some of their challenges.

    “There is lack of awareness about the benefits of leasing, but the industry is now gaining traction. The recent move by the government to adopt leasing has opened more avenues for private investors,” the company said.

    The company leases equipment from three to 10 years.

    Before leasing

    Companies need to show their audited accounts, a track record, profile, survey, business plan and projected growth before leasing the equipment.Leased vehicles and machines come with insurance and maintenance, but the customer buys the fuel.

    The company leases to countries through cross-border leasing. The ownership of the assets is assigned in those countries, but rentals come from their five regional offices.

    Vaell has started designing leasing solutions for the regional market.

    “We recently launched a sell and lease back solution early this year and so far  we have an overwhelming demand from our clients that will allow availability of our product to more customers and help expand our growth,” it.

    The company is also targeting counties. It has organised leasing conferences to encourage counties to lease vehicles, machines and equipment instead of buying.

    In July this year, the firm won a Sh350 million deal to hire out machinery to a consortium of Tanzanian mining firms.

    Mr Mulili advises budding entrepreneurs to dream big and stay focused.

    This article first appeared on the Business Daily Africa  website. (17 Nov, 2014 )

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    Create a captivating garden in your office

    vaell-leasing-garden-offices-along-mombasa-road-quipbank-centerThe atmosphere at Vehicle and Equipment Leasing Limited (VAELL) offices is captivating. The snow-white seats at the reception are complemented by the lush green of surrounding palm trees.

    For a moment, the reception at Vaell’s premises on Mombasa Road appears to be swallowed in the sea of green. “My boss loves flowers. It also makes the air around the office fresh,” says Ms Mauta, Vaell’s corporate communications officer.

    Although having flowers in the office is not a new concept, Vaell has worked magic with its flowers to bring out a great look around the office. The flowers are arranged in a line that partitions the entire office. They segment the reception area, which also serves as a waiting area and a small, open boardroom.

    On the floor where most of the staff sit, flowers have been placed along the centre of the room, dividing the work stations. The main office is well lit and spacious with no crammed desks or chairs. This gives the flowers in the large pots more dominance as they are the first thing guests notice immediately they enter the offices.

    According to Vaell MD Paul Njeru, an office has to be airy and the only way for that to happen is by having plenty of flowers.

    “An office has to breathe. I think that is something we can’t compromise on. There are more plants in this office than people. There is actually a plant for every person and more,” says Njeru.

    The blossoming flowers come with frequent care. Ms Mauta says they often take them out to get some sunshine in order to keep their lush looks. To do this, they have a landscaper who comes in on a weekly basis to tend to them.

    Vaell also has an affiliate company located in Kitengela, which only deals in flowers. It costs the company about Sh 5,000 to keep the flowers blooming and looking good. But some plants are expensive. Like the seven-year-old palm tree which cost Sh50,000.

    Green environment.

    To create awareness on the importance of a green environment and to help employees develop an interest in the plants around the office, Vaell engages the staff in naming games. “We sometimes have a competition in the office to see who can name most of the palms since we have seven different types,” Njeru says.

    Foliage in the office, no doubt, brings life to the serious, corporate environment by providing a pleasant, calm area for both staff and visitors.

    However, the plants need good care. Regularly clean the flowers, take them out for sunshine and water them appropriately. In case of many flowers, it’s good to have one employee who is dedicated to tending them.

    The choices of flower pots and flower types depends on what one wants to achieve. But make sure the foliage you settle for doesn’t require more sunlight than the office lets in.

    This article first appeared on the BUSINESS DAILY AFRICA  website. ( Posted  on Thursday, July 10   2014)

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    Grow Your Business with VAELL Leasing

    Vaell Leasing helps you grow your business.

    Finding reliable plant equipment, vehicles and heavy machinery lease company in the region isn’t a small feat these days. There are so many things that need to come together to provide for a reliable and reputable company that is able to meet all the needs of its clients. For a decade now VAELL has been hard at work perfecting our approach to the plant equipment, vehicles, heavy machinery lease industry and today service thousands of satisfied clients throughout South Africa.

    Many companies in the region are unable to afford the cost of investing in plant equipment, heavy machinery and different vehicles. There are also plenty of companies who require heavy earth moving equipment on an on-again-off-again basis, depending on season and project. Making use of our expert plant, equipment and vehicle lease company East Africa, you can partner with VAELL that will take all the hassle out of finding earth moving equipment.

    It’s because of lease that companies in the region are able to effectively operate today and reach their project deadlines. The equipment and machinery available from VAELL Leasing can help you to perform the many different functions you need to in able to deliver the completed project to your clients on time.

    Our knowledge and experience of the industry is unsurpassed in the sector. Bringing many years’ experience to the table, our team of seasoned professionals is committed to providing you with only the very best products and services that will help you to grow your business to where it needs to be.

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    A Tribute To The VAELL 2015 Team

    A tribute to 2015 Vaell Team

    It was a chilly Friday morning, the 4th of December, 2015. I had to be at the Junction at 6:30 am to attend celebration of 40 years anniversary for OikoCredit. OikoCredit is the world’s largest Micro Lender, based in Netherlands….and our Impact Lease project, after 2 years of development was most exciting for them! The project targets small holder farmers to link them to superior agricultural machinery to enhance farming through a rental platform.

    Great work to the Impact Lease team. I want to appreciate you for the hard work which helped in making this project a success. Thank you Njoki – you led OikoCredit all the way to the end the past 12 months. Rachel, you took the OikoCredit representatives around Narok for a whole day, and they rode tractors and drank tea with milk from our cows…. Lesson? We may not know what every arm does, but you may be surprised the impact it has to our partners. Now we can proceed to acquire tractors for the Tinga team!!

    So you know why I was waking up that early. I got to Junction Mall at 6:00 am, 30 minutes early. No traffic. Just as I was trying to catch up on my emails, the client I was to meet called. He wanted us to meet urgently before he flew out. They had concluded negotiations for a huge contract in Uganda, and they needed us to increase the equipment likely to cost us USD 3M. Luckily we have the sources. In fact, one of the machines is arriving at our Quipbank premises before Christmas, from Atlas Copco… Well done QB!! Jen and team, the client see us as the partner of choice across the region. Go QB Go!!!!

    At 8:00 am ….

    Oh my, I then proceed to meet one of our banking partners.. To cut the long story short, they confirmed having Kshs. 250M for us to utilize and gave us deadline to use it before the end of this year! Approximately 10 working days to go. While discussing with them which clients we will allocate the money to, great news from our credit team regarding other banks comes in, they had rolled in over US$ 25 Million of bank facilities in readiness for 2016! I won’t go into the details, as that is someone else’s day, but……Go Credit Go!!! You made marketing team’s day!

    At 10:00 am ….

    I had to slow down then, as the traffic was crazy. But I managed to meet one of our clients, and our Accounts team had done a great job in managing the payment schedule. Their exercise to raise capital through a Bond is on-going, and they are in a good position to proceed on the lease rental payments. They are ready to pay some US$ 500,000. Jackline, your name is known, though they would like to see your face. J! Go on Accounts! Great Job!

    At 1:00 pm

    I made it to Upper Hill just in time for a meeting with one of our partners. Then, this was a show stopper. They are in love with our Tinga project. “You have to extend it to yellow machines immediately”, they said. They are working with government to supply equipment for road contractors, and they absolutely need this platform! They promised to come to QB to see the platform demo, and have a feel of the place. Chris, you have fans! Go Tinga Go!!! I have a feeling this will be our biggest program next year….. Watch this space keenly!

    At 2:30 pm

    Then I was hungry, and needed to fuel my stomach. Sammy had been shuttling me around from 7:00 am. We decide to rest at Upper Hill. I bumped into some of our partners who were owing us some delayed payments from the government. But all has been paid this week, and he is delighted. He took Pauline’s letters all the way to State House, … Did I say Good work Pauline/Silvia???

    The QB Architect joins me and he has a great surprise for the 3 acre QB Narok!! I cannot wait to see it developed, and right in the heart of the town! Narok County signed Kshs. 52B of projects this week alone, it is the breadbasket of the country and gateway to Maasai Mara. It is the place to be….. Go QB Narok! 2016 is yours.

    At 4:00 pm

    It was already 4:00 pm. I had received a few phone calls by then. I was needed at the Windsor by 6:00 pm. I managed to maneuver to Windsor, and reached there just in time. It is a picturesque golf club. Woody and roomy even inside the buildings….and the garden? Feeling a little better, I entered the building. I was suddenly between two suited bulky men. I was quickly whisked to a private party…..where I was put together with household names like David Rudisha, also our very own representative in the English Premier League, Wanyama (well, he couldn’t make it, I think he was busy…..But his mum came!) and many others. A team from PWC had received hundreds of nominations from Kenya, of men who should be recognized. And they had to select 40 of them. These men had to be under 40 years old.

    Vimal Shah, the CEO of BIDCO and Paul Njeru, the RMD of VAELL Group

    We were treated to a three course meal, sponsored by Nation Media Group, with drinks courtesy of EABL. They do know how to throw a party! Jimmy Gathu was the host and the guest of honour, was none other than, Vimal Shah. His products exported to over 16 countries, the head of Bidco Group was right there with us!

    The night moved in so fast, I just remember one item in his speech…. Focus on the little thing, and keep your focus. He reminded us of Steve Jobs, who took 4 years to decorate his house, because of how particular he was. On his hospital bed, during his last days, he had to be brought 4 different oxygen masks. Even though he could not talk, he would not accept what he did not consider the right type. Lesson? Don’t settle for less. ”. As he said all this, I sometimes recall the tension in the office because of the high standards our clients and partners expect, and I realize, it is all for a good cause! No regrets. We set standards, and then we keep improving them. Oh, and another Gem he said….”try to remove the word “try” from your vocabulary”!!

    Soon we were receiving awards….. Success is not all about money –good lesson!

    Finally, as I was looking back this morning, and remembering all the teams I have worked with throughout my career, I realized how each one of them have shaped me. But this VAELL team, has shaped me most. Each and every one of you has made me who I am today. Not from your year’s work, or last month, but every day. Each phone call you make, and email, and every time you represent us, you are shaping me, just as I to you.

    This award is shared fully with you!

    Thank you!

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