Posts by VAELL ICT

    VAELL unveils Sharing Economy to ease manufacturers’ inventory headaches

    Manufacturers are set to benefit from dry storage and warehouses to be unveiled countrywide by regional leasing firm, Vehicle and Equipment Leasing Limited (VAELL), in what pundits termed as a sharing economy. The model dubbed ‘space share’ will ease manufacturers’ logistics headaches since they don’t need to own warehouses and storage and therefore not incurring the cost of building and even renting the entire space that they are not using. Businesses will only be required to pay for the space they are using as they share the other space with others in trucks or in the warehouses. This will enhance the traditional warehouse market, from temporary trailers to Airbnb-style matchmakers that provides warehouse space and logistics together.

    Space Share is expected to revive the distribution model that has collapsed countrywide and revamp supply chain networks to embrace e-commerce expectations. The Naivasha based asset leasing firm’s new strategy to ease cost of storage for manufactures indicates a growing shift by companies in a bid to slice cost of doing business in these challenging economic times. The regional lessor becomes the first company in the region to come up with a space leasing scheme for manufacturers, suppliers and hauling companies. Such consumer’ oriented innovations for the mass market have made the firm bag various awards. The lessor was recently ranked by various award organizers as the preferred leasing firm in the region.

    According to VAELL Kenya’s MD, Bertha Mvati, the country has a cute shortage of warehouses and dry storage where manufacturers can store their goods as they wait for customers to buy. This has contributed to a low manufacturing due to fear of goods going bad.  

     “This invention is demand driven. We are responding to the market needs. Manufactures have been asking us if we can have this model in Kenya. We are happy that finally we have been able to come up with a product that suits their needs. It is being practiced in developed countries and we believe it will be a success here too,” added Bertha.

    With the dry storage and warehouses businesses can store their merchandises in strategic locations where supplies can be made proportion to the market demand. The warehouses will also act as distribution centers and hence enhancing service delivery and customer satisfaction.

    By providing enough space to store products closer to the consumers, space share will reduce trips made by manufactures’ daily from Nairobi, Mombasa, Thika, Nakuru and other industrial areas to make deliveries in the rural areas,” said Bertha Mvati, Vaell Managing Director for Kenya.

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    VAELL SHINES IN TANZANIA

    VAELL has once again been featured in the prestigious list of Tanzania’s Top 100 Mid-Sized companies for the year 2019/20 in an event held at Serena Hotel in Dar Es Salaam. This time round we were ranked position 29, being an improvement from number 45 in last year’s survey. This is the fourth appearance on the same survey for our Tanzanian branch. The annual ranking is organized by Citizen newspaper in conjunction with KPMG Tanzania. The annual award winners are normally selected from a competitive pool of applicants through a rigorous scrutiny. A panel of independent judges classify the winners based on their reach, uniqueness and innovation, effectiveness and impact.

    Vaell Tanzania team receiving the award

    VAELL Tanzania was the only leasing firm that made it to the list this year. This is our third major award this year having scooped two other honors in Kenya where we were recognized as the leading lessor and lessor of choice by other such acknowledgement organizers.

    VAELL Kenya did not participate in the KPMG award this year since we already passed this category.  In 2014, VAELL Kenya was ranked the first runner-up in the survey and rose to Club 101 in 2015.

    We owe the success to your contribution and the dedication of our Tanzania team.

    It is worth noting that in 2018 we were also recognized as the best East African Company in service sector by East African Business council Tanzania

    It is an honor to be recognized at a regional level for our efforts in supporting the growth of SMEs. The award organizers said that our improvement in the ranking came as a result of good and sustainable profitability supported by ability to innovate products and adapt to the market. They also said that since inception we have been at the fore front in supporting and empowering Small and Medium Enterprises through offering customized leasing services for our clients.

    In the recent months, the Tanzanian team has tremendously improved and led by example. This is a challenge to other teams to benchmark with this improvement and post better results.

    We thank all staff, clients and stakeholders for your continuous support!

    By VAELL Tanzania Management 

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    VAELL Logo

    Way back in time, different symbols represented different ideologies. You might be wondering what VAELL logo means? Have you asked yourself what the star in our logo means? The four pointed star represented true justice and righteousness. It was also a symbol of “Utu” believed to be ubuntu (People of Utu) is sourced I am because we are.

    We are proud of a symbol of justice and righteousness. It balances and defines our own products. It also represents our ultimate objective for every action we undertake. For every peril overcame, a quality is developed in gifts; clarity, discernment, radiance, energy, warmth,equality.

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    VAELL ROLLS ZERO EARLY RETURN COST LEASE

    Regional leasing firm, Vehicle and Equipment Leasing Limited (VAELL), has launched Zero Early Return Cost lease program dubbed ‘Time Share’ to help businesses and individuals withstand fluctuating business environment. The lessor becomes the first firm to implement lease break program for SME’s and the broader market in the region and is expected to bring new development to the ordinary lease. The existing lease locks clients throughout the lease period without an exit plan. Many people feel the lease is cost-demanding because you have to pay for the asset even when not using it. The idle equipment turns to be a liability rather than an asset, lowering profit margins. In finance lease you cannot take a break while servicing a loan. When loanee fails to pay the banks the agreed amount they face the risk of their assets being repossessed.

    Individuals and institutions which only require assets services during peak seasons fear incurring losses while paying for the asset once the demand goes down. Hence, the new lease will gives them an opportunity to lease the asset at a time of demand and return to the lessor after the use.  This comes as a sigh of relief to businesses that are seasonal as the product allows clients to return assets until such a time a contract is renewed.  

    Bertha Mvati, lessor’s MD for Kenya said, “This will provide break options for our clients and is in compliance with the new IFRS rules. We have not attached legal demands when a client decides to take a break before the lease maturity. If your business is seasonal, why should we lock you in?”

     “This lease program is very flexible and allows clients to end their leases early without penalties. This offer may create substantial equity for our customers,” said Bertha Mvati.

    Time Share is designed for companies and individuals to free their leases from financial commitment should their personal circumstances change unexpectedly, for instance if their contract or tender is cancelled suddenly. It enables the lessee to hand the asset back, without the worry of funding the difference between the market value of the vehicle and the outstanding finance settlement amount. Life is full of changes. The chances are that some unforeseen event and challenges resulting in a change to financial situations may happen at some stage during the term of a lease agreement.

    “We understand fluctuating business environment and we would like to help our clients. With Time Share, customers get to match their machinery requirement with not only their long term needs but also their short term needs and pay absolutely zero rest lease fees,” she added.

    The company is placing vehicles worth more than Kes. 300 million into the program. This program will benefit lessor’s clients in various African countries including Kenya, Uganda, Tanzania, Rwanda and Southern Africa Market.

    For further details and updates, please

    Contact;

    Jared Oundo,

    Corporate Communications

    VAELL,

    Email: jared.oundo@vaell.com,

    Cell: +254 719408244/0780408244

    ABOUT VAELL

    Vehicle and Equipment Leasing Limited (VAELL) is the market leader in asset leasing, maintenance and consulting in Eastern and Central Africa region. It has presence in the auto mobile, healthcare, mining, agricultural, telecommunication, construction, gas and oil sector. It has managed to diversify and expand its portfolio by offering customized solutions to suit every client’s requirement and need. VAELL, the leading provider of integrated leasing services for a broad range of moveable assets and machinery across the region, has geographical coverage with fully fledged subsidiaries in Uganda, Rwanda, Tanzania and Zambia. The leasing firm has a correspondent relationship with other leasing companies in South Africa and India. It facilitates clients with vehicles and machinery throughout the region from any one country office across its network.

    In 2014 VAELL won the award for the Best in Transport, in the Top 100 KPMG/Business Daily survey, and 2015 shot into Club 101 in the same survey. It has scooped 14 awards in the last 5 years. The leasing market leader was named in 2018 by East African Business Council Tanzania as the best East African Company in The Service Sector. The lessor has also been named in the South Africa’s Titan Building Nation awards in the outstanding achievement category.

    VAELL was recently hosted by Nairobi Securities Exchange (NSE) onto its premium incubation and acceleration programme, Ibuka. VAELL also owns Quipbank Trust Limited, equipment sharing platform and TingA, East Africa’s largest tractor share platform.

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    VAELL APPOINTS A NEW MD FOR KENYA

    Regional leasing firm, Vehicle and Equipment Leasing Limited (VAELL) has tapped Ms. Bertha Mvati from Zohari Leasing Limited, a subsidiary of Centum Investment Limited as the new Managing Director for Kenya. Ms. Mvati is expected to undertake commercial and operational roles. She brings over 10 years of leasing experience. Prior to her appointment, she was the Business Manager at Zohari Leasing Limited overseeing the company’s operations and strategy implementation. 

    She joins at a time when the lessor is set to launch new products in the market targeting the end consumer. VAELL is launching new products for the mass market to compliment the current products that targets mainly the corporate clientele. The new products are expected to boost the growth of the small business segment. This includes a massive US $ 5 Million investment in TingA, their flagship agriculture leasing brand. Ms. Mvati will be a focal point in the Kenyan market in commercializing leasing as well as offering a range of financial solutions for a broad range of clients.

    Commenting on her appointment, Ms. Mvati said: “I am looking forward to building on the efforts made by everyone in the company over the past few years, cementing our hard-earned reputation for service quality and working to grow the business from what is now a very sound base.”

    Before moving to Centum’s subsidiary, she was a member of VAELL’s senior management where she helped the lessor to emerge with a more consistent approach across all operating regions and a focus on quality of service. In 2014, she contributed to the lessor joining club 101 after being named first runner-up in the Top 100 survey, an initiative of KPMG and Nation Media Group that seeks to identify Kenya’s fastest growing medium-sized companies in order to showcase business excellence and highlight some of the country’s most successful entrepreneurship stories. VAELL has scooped 14 awards in the last 5 years. It first featured in Top 100 KPMG awards in 2012.

    https://www.businessdailyafrica.com/corporate/companies/Vaell-picks-Centum-executive-for-top-job/4003102-5020256-2tndpnz/index.html

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    Lender ordered to pay Vaell Sh8m; legal tussle

    Jamii Bora Bank has been ordered to pay Vehicle and Equipment Leasing (VAELL) Sh8 million for interest it overcharged the firm on a loan.

    In the court ruling documents seen by The Standard, the court established that the lender had overcharged VAELL interest rates of up to 28 per cent – double the 14 per cent set by the law capping interest rate charged by financial institutions.

    According to the law, banks can be fined up to Sh. 1 million for charging loans at more than four percentage points above the base rate published by CBK.

    VAELL filed the case against Jamii Bora Bank in 2016 after the lender repossessed its assets leased to clients.

    The court established that the bank had failed to effect the new provision of the amendment of the Banking Act with respect to the interest rate and overcharged VAELL by Sh8.040 million.

    The bank was also found to have repossessed the assets VAELL leased to clients while the arrears were less than the excess interest.

    Milimani High Court Judge (Commercial and Tax Division) James Makau said the bank misled the court to believe that the rates it charged were as agreed in the agreement and that it was pre-determined, pre-calculated and agreed upon.

    This was after the court asked the Jamii to supply VAELL with a statement of accounts showing the interest rates the bank had charged the firm since September 14, 2014.

    “It was after the supply of the statements and subsequent reconciliation that it became apparent to the plaintiff that the bank had misled the court that the interest rates had been pre-calculated and that the bank had been verifying the interest rates and based on that discovery, the applicant preferred this application review.”

    The court ruled that the bank unlawfully attached VAELL’s assets and ordered it to return them.

    Justice Makau also ordered the bank to apply the lawful lending rate of 14 per cent on all the loan facilities that VAELL had with the bank.

    https://www.standardmedia.co.ke/article/2001309478/bank-ordered-to-pay-vaell-sh8m

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    VAELL considers Initial Public Offer

    Vehicle and Equipment Leasing Limited (VAELL) has initiated the process needed to go public in February 2019, a move that will help the leasing giant raise $10 million to strengthen its Asia and Southern Africa partnerships. The company has appointed a consultant to advice on the process. The listing will give the leasing market leader greater managerial autonomy to advance its own growth strategy. The amount of securities offered will be determined by market conditions and other factors at the time of the offering. The lessor will communicate the percentage of shares they will offer by end of January 2019 after the board’s approval. According to the companies audited accounts for financial year 2017, the lessor’s profitability was stable though its turnover decreased by 3.5% due to the political climate, however net profitability increased to 20% on a turnover of KES. 1.418 billion.

    VAELL also owns the Quipbank equipment sharing platform and TingA tractor sharing platform. TingA was recently quoted as having won contracts from EABL for sorghum growers in Nyanza. In 2017 TingA, East Africa’s largest tractor share platform, won a grant of $500,000 from Alliance for a Green Revolution in Africa (AGRA). TingA is VAELL’s youngest brand and they aim to use the IPO to expand that success into other industrial equipment. Quipbank has been recently quoted as having won tenders to build dams in Narok County.

    VAELL has consistently posted strong earnings and profitability and is leading in regional growth with subsidiaries in Uganda, Rwanda, Tanzania and Zambia. The leasing firm has a correspondent relationship with other leasing companies in South Africa and India. Asked about the secret of lessor’s success in the industry, the VAELL’s Chairman Joseph Kiiza said, “We attribute our success to God Almighty. We normally start with prayers every Monday morning, actively praying for our clients’ success and wellbeing. A successful client is a successful business”

    For further details and updates, please

    Contact;

    Jared Oundo,

    Corporate Communications

    VAELL,

    Email:jared.oundo@vaell.com,

    Cell: +254 719408244/0774408244

     

    ABOUT VAELL

    Vehicle and equipment leasing limited (VAELL) is the market leader in asset leasing, maintenance and consulting in Eastern and Central Africa region. It has presence in the auto mobile, healthcare, mining, agricultural, telecommunication, construction, gas and oil sector. It has managed to diversify and expand its portfolio by offering customized solutions to suit every client’s requirement and need. In 2014 VAELL won the award for the Best in Transport, in the Top 100 KPMG/Business Daily survey, and 2015 shot into Club 101 in the same survey. It has scooped 14 awards in the last 5 years. The leasing market leader was named this year (2018) by East African Business Council Tanzania as the best East African Company in service sector. The lessor has also been named in the South Africa’s Titan Building Nation awards in the outstanding achievement category.

    About Quipbank Trust Limited

    Quipbank Trust Limited (QB) is a short term rental firm established in 2014 as a subsidiary company to Vehicle and Equipment Leasing Limited (VAELL), a leading independent leasing firm in the region.

    QB stores and rents /sales out idle equipment on behalf of the owners through a shared resource use economic model. Further we deal with disposal of ex-lease as well as new dealer based equipment. Our clients include contractors, farmers, county governments as well as corporate entities.

     

     

     

     

     

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