This archive report was first published on 8 July 2020.
On July 8, 2020, NCBA Group announced the acquisition of a car yard, marking a significant shift in the bank's approach to selling repossessed vehicles.
According to NCBA, this move has led to a 15 percent increase in the selling price of repossessed vehicles and faster turnaround in their disposal. The bank attributes this success to the ability to conduct basic maintenance, such as regular cleaning and ensuring proper tyre pressure, to restore the vehicles' value.
NCBA's latest annual report reveals that the bank has financed customers to acquire over 4,300 vehicles worth around Sh. 17 billion. Notably, 80 percent of these vehicles are being used commercially by small and medium-sized enterprises.
The rise in bad loans among Kenyan banks is a pressing concern, exacerbated by the coronavirus pandemic and a shrinking economy. As borrowers struggle to meet their debt repayment obligations, NCBA's innovative approach to vehicle sales may serve as a model for the industry.
