- An agreement was reached when the parties signed a deal at the state house in Nairobi Kenya, to cater to the increasing demand for vehicles to boost sales rates.
- It is after the signing that President William Ruto announced plans by Zamyad to set up a motor vehicle assembly plant in Mombasa.
East Africa’s largest equipment-sharing platform, Quipbank Trust Limited, has signed a partnership with Iranian automobile manufacturers, Zamyad Company and Iran’s second-largest car manufacturer, Saipa.
The arrangement will see the equipment renter become the dealer for various units including Gas Powered Pickups and distributor for the hybrid Light Commercial Vehicles which are CNG and LPG gas-powered and electrical vehicles.
An agreement was reached when the parties signed a deal at the state house in Nairobi Kenya, to cater to the increasing demand for vehicles to boost sales rates.
It is after the signing that President William Ruto announced plans by Zamyad to set up a motor vehicle assembly plant in Mombasa.
Present was Iranian President Ebrahim Raisi.
Ruto said the plant will manufacture native Iranian vehicle models.
He said the vehicles have been given the Swahili name ‘Kifaru’.
The announcement was made during an address alongside Iranian President Ebrahim Raisi, Zamyad, and equipment renting firm Management among other dignitaries at State House, Nairobi.
As part of the agreement between the firms, the equipment renter has also entered into a partnership to get electric vehicles (EVs) from Iran’s second-largest car manufacturer, Saipa.
This distribution agreement is an exclusive agreement for dispensing at least 1000 units of various models of vehicles manufactured by the Iranian firm which now has a presence in four continents including Africa through Kenya.
This comes two months after the two firms signed a cooperation agreement in Nairobi with the top management of the two firms.
The Kenyan Iranian ambassador attached in Kenya Jafar Barmaki, played a key role in the agreement.
“The dealership is to support operations of the auto manufacturers within the region utilizing our experience and expertise that spans for decades. The strong vehicles from Zamyad will help many citizens, especially in the rural areas that need such strong vehicles to withstand rough, bumpy and unleveled terrains. These vehicles are all-terrain and will help a lot, especially during the rainy seasons,” said Paul Njeru, Regional Managing Director regional the equipment renter.
According to the vice chairperson of the board of Iranian-based auto dealer, MSeyed Mohsen Mortazavi, the pickups are very affordable, and cost-effective because they use gas, compared to other diesel- and petrol-powered models, using gas is more affordable and despite the assumptions a lot safer too.
"This makes the vehicles environmentally friendly because they utilize greener energy to reduce carbon emissions," he said.
"We look forward to working together with Quipbank Trust Ltd and hope for a fruitful partnership between our two countries that is Iran and Kenya."
ZAMYAD has received various awards including, Champion of the automotive industry among others.
The equipment-sharing platform on the other hand has also received several awards including the Prestigious International Award dubbed Pacesetters Awards Africa Pacesetters Award (PSA) which is an annual Industry Leadership Recognition program organized by Jubilant Stewards of Africa (JSA).
It was recognized as Pacesetter in the regional equipment sharing platform of the year in the just concluded Eastern Africa chapter of the awards and last year as the Pacesetter in Electrical and Solar Vehicles.
“We are happy to be associated with Quipbank, who have a reputation for excellence and professionalism – values that we emphasize in our delivery of service,” added the CEO of the Automobile Manufacturer.
The equipment renter says that these vehicles will reduce the losses incurred by businessmen while transporting their cargo from one location to the other.
With the advent of ‘Kifaru’, it is expected the cost of transporting goods will come down by at least 30% and therefore the cost of goods and living to also come down especially this time when the economy is facing various challenges.
“With ‘Kifaru’ we expect to ease the cost of doing business. A majority of the roads in Kenya are in sorry states and very bumpy. When you drive on these roads, you feel like you are dancing because you sometimes jump up and down in a rhythmic manner which is not a fun thing if it happens unintentionally," said Njeru.
"Such roads hurt the economy and that is why we came with these products to ease transportation of goods across the country. These vehicles are able to withstand such roads.”