Machinery Rental

The market Elysium operates in is import-dependent: lead times run 2–10 weeks, and prices are affected by import duties, VAT and exchange-rate fluctuations. Informal competition remains a factor in both sales and rentals, with varying quality and service standards, and regulatory influences include import duties, VAT and technical compliance for machinery. Agricultural rental demand is seasonal, tied to planting and harvesting cycles.

The growth plan is anchored in confirmed demand and contractual commitments rather than speculative orders. The loan is disbursed in tranches tied to verified procurement and delivery stages, and repayment is scheduled to align with client payment milestones. The company has maintained profitability across all periods without incurring significant debt, and its presence in two markets — urban infrastructure and agricultural mechanisation — gives resilience to sector-specific downturns.

From 2021 to 2024 Elysium Ventures Limited increased revenue by 31% and net profit by nearly 62%. Growth drivers included expansion of the rental fleet, execution of repeat contracts with construction and agricultural clients, and an increased share of higher-margin equipment sales. Cost of goods sold as a percentage of revenue declined, reflecting improved procurement terms and operational efficiency. No significant one-time extraordinary expenses were reported in the period.

Key financial indicators, €

Margin analysis

Gross margin improved from ~40% in 2021 to 44.6% in 2024, indicating stronger pricing power and disciplined cost management. Net margin increased from 17.9% to 22.1% over the same period, showing the company’s ability to translate top-line growth into bottom-line gains.

Year-over-year performance

• 2022 vs 2021: revenue up 13.8%, gross profit up 19.4%, net profit up 28%, reflecting effective cost control and higher equipment utilisation.
• 2023 vs 2022: revenue up 9.4%, net profit up 15.1%, driven by balanced growth in the rental and sales segments.
• 2024 vs 2023: revenue up 5.4%, net profit up 9.5%, with margin expansion continuing despite modest top-line growth.

Forecasts for 2025 and 2026 remain conservative: they incorporate only confirmed contracts and factor in full loan interest servicing while retaining positive margins. Diversified income streams provide resilience to sector-specific downturns.

Elysium will maintain its dual-track model of machinery rental and sales while prioritising the expansion of its construction equipment supply operations, in line with strong and documented demand from the Nairobi construction sector. Agricultural clients, particularly cooperatives around Nairobi, will continue to be served, but growth in 2026 will be anchored by high-value supply contracts.

Confirmed expansion initiatives

• Execution of two secured equipment supply contracts in 2026 with a combined procurement cost of €567,626 and expected revenue of €723,350.
• Contract 1: Epco Builders Limited — delivery of cranes, excavators, wheel loaders and bulldozers (procurement cost €368,476).
• Contract 2: Hayer Bishan Singh & Sons Limited — delivery of graders and asphalt pavers (procurement cost €199,150).
• All equipment to be procured, delivered and commissioned within 2026.

Capacity and financial impact

• Entry into mid-scale equipment supply positions the company to serve larger infrastructure projects in Nairobi and the surrounding counties.
• The company can deliver multiple high-value contracts within a 6–9 month window, significantly increasing annual turnover potential.
• Revenue from the confirmed 2026 contracts alone represents over 60% of the company’s 2025 turnover.
• Once executed, the proven delivery capacity is expected to attract similar-scale contracts in 2026 and beyond, while the rental division keeps a stable recurring income.

Operational efficiencies

• Established logistics, supplier networks and procurement processes reduce lead times and operational bottlenecks.
• Tranche-based financing aligns capital deployment with contract milestones, lowering idle capital costs.

Elysium operates in two principal industrial segments in Kenya and the East African Community (EAC): construction equipment rental and sales, and agricultural equipment rental and sales. Both are shaped by public infrastructure investment, agricultural mechanisation and rising demand for cost-efficient access to heavy machinery.

Construction equipment — Kenya and the EAC

• Estimated 2023 market size in Kenya: €585–645 million a year (rentals €285–295 million, direct sales €300–350 million).
• Nairobi and the surrounding counties account for over 60% of national demand.
• The EAC-wide market exceeds €800 million, supported by road construction, energy projects, urban expansion and regional logistics development.
• Rental demand is driven by contractors prioritising flexibility and lower capital commitments for short- and mid-term projects; sales are driven by fleet expansion and long-term capital planning by larger contractors.
• The market is import-dependent, with lead times of 2–10 weeks and prices affected by import duties, VAT and exchange-rate fluctuations.

Agricultural equipment — Kenya

• Estimated market size: €460–690 million a year (rentals €60–100 million).
• Demand growth is fuelled by cooperative and private farm mechanisation, particularly in Kiambu, Nakuru, Machakos, Nyeri and Meru counties.
• Rental demand is seasonal, tied to planting and harvesting cycles; core rental items are tractors, disc ploughs, planters and sprayers.
• Sales are more common among larger cooperatives and agribusinesses with reliable financing or access to state-backed programmes.
• Mechanisation rates remain below 40%, indicating significant long-term growth potential.

Competitive landscape and position

Demand is concentrated geographically in urban and peri-urban areas, and informal competition remains a factor in both sales and rentals. Elysium operates primarily in the B2B segment, serving construction contractors, cooperatives and large-scale farms, with a hybrid revenue model that combines recurring rental income with high-margin one-off sales. Its relationships with repeat clients and cooperatives, together with its import and delivery capabilities, position it to capture growth within the domestic market.

Elysium Ventures Limited requests a €550,000 loan to finance the procurement and delivery of construction machinery under two confirmed contracts with Epco Builders Limited and Hayer Bishan Singh & Sons Limited. The total procurement requirement is €567,626, with expected contract revenue of €723,350. The financing is used exclusively for these orders, with a defined scope and delivery timeline in 2026.

Planned asset acquisition

The allocation also covers international freight, customs clearance and staged supplier payments tied to verified milestones. The loan is disbursed in tranches linked to verified procurement and delivery stages, and repayment is scheduled to align with client payment milestones from the confirmed 2026 contracts, so that principal repayments coincide with revenue realisation.

The €550,000 loan is secured by a diversified collateral package of tangible fixed assets (construction and agricultural machinery, agricultural equipment), company financial reserves, and machinery under current supply contracts, with legal title retained until full client payment. These assets have active secondary markets, providing stable liquidation potential.

Owned equipment

Committed financial reserves

Equipment under confirmed contracts (2026)

Coverage

Total collateral value divided by the €550,000 principal gives a coverage ratio of ~2.44 — over 240%. The pledged assets are sufficient to cover the loan principal and interest exposure, and the mix of high-demand, marketable equipment and liquid reserves protects the lender while supporting operational continuity.

Elysium Ventures Limited is a privately held company registered in Kenya, specialising in the import, rental and sale of construction and agricultural machinery. Its operations are primarily B2B, serving construction contractors, agricultural cooperatives, logistics companies and government-affiliated entities. The company operates mainly within Nairobi and the surrounding counties, supplying both new and pre-owned equipment sourced from China, Japan, the UAE and Europe.

Key business lines are short- and medium-term rental of tractors, excavators, cranes, bulldozers, wheel loaders and agricultural attachments, and direct machinery sales, including bespoke project-based imports.

Operational footprint

The headquarters are in Nairobi. Storage facilities and the equipment fleet are located in a central service area, enabling prompt delivery to clients. Maintenance is carried out partly by in-house mechanics and partly by specialised third-party service providers.

The owner and CEO is Emmy Nyabari Kalusa, who holds 100% of the equity. She has hands-on expertise in procurement management, fleet planning and maintaining supplier and client relationships, and directly oversees strategic development and operational performance, including interaction with key clients and suppliers.

Product and service portfolio

• Rental of construction machinery (cranes, excavators, bulldozers, wheel loaders)
• Rental of agricultural machinery and attachments (tractors, ploughs, seeders, sprayers)
• Machinery sales with turnkey delivery and customised project-based imports
• Local delivery and basic technical support

Key clients

Construction sector: Epco Builders Limited, Hayer Bishan Singh & Sons Limited, Mandhir Construction Limited, Meera Construction Limited, Visaro Construction Company Limited, Douglas Projects Limited.

Agricultural sector: Githunguri Dairy Farmers Co-operative Society, Kabete Farmers Co-operative Society, Limuru Dairy Farmers Co-operative Society, Machakos Farmers Co-operative Union, and other cooperatives and private farmers in high-demand counties including Kiambu, Naivasha and Nakuru.

For 2026 the company holds confirmed contracts totalling €723,350. These agreements, together with recurring rental commitments, provide a visible and diversified revenue pipeline.

Competitive advantages

• Diversified fleet of over 30 units of construction and agricultural machinery
• Established import channels enabling competitive pricing
• Repeat and project-based orders from major clients
• Ability to combine recurring rental income with high-margin one-off sales

Integration in supply chains

The company maintains stable relationships with suppliers in Asia, Europe and the Middle East, as well as long-term ties with clients. This reduces commercial risk and supports reliable procurement and delivery cycles.