This archive report was first published on 29 June 2021.
On June 29, 2021, NCBA Bank Kenya PLC and Simba Corp announced a significant partnership in the vehicle financing sector. The asset finance deal will see NCBA Bank Kenya PLC finance up to 95% of all commercial and personal vehicles sold by Simba Corp.
As part of the deal, new and repeat customers will enjoy discounted loan facility fees, easing the financial load in the current business environment. The Small and Medium Enterprise sector, which is the largest employer in Kenya, will be the biggest beneficiary of this unique financing deal, which will run for six months.
The partnership will offer customers a 13% interest rate per annum on reducing balance over a maximum tenor of 60 months. Additionally, customers will receive a 60-day grace period after the vehicle release date before loan repayment.
According to Lennox Mugambi, Group Director, Asset Finance and Business Solutions, “This asset finance deal comes at the right time during this pandemic period when businesses are slowly recovering from the ripple effects. At NCBA, we are on a continuous journey to forge partnerships that are beneficial to our customers.”
He further emphasized the benefits of the deal, stating, “It is at a time like this that our commitment towards supporting our customers to achieve the numbers that matter to them truly stands out. While the current economic environment is still fluid and continues to change on a daily basis, our highest priority and commitment to sustain our customers’ businesses remains unwavering.”
Naresh Leekha, Simba Corp Managing Director, Motors, noted that financing has been a key driver for businesses to take up assets that will help them scale up their production and recover after a period of suppressed economic activity due to Covid-19.
