This archive report was first published on 18 October 2021.
On October 14, 2021, Stanbic Bank Kenya and Tata Africa Holdings Kenya signed a Memorandum of Understanding that marked a significant milestone in the Kenyan market.
The partnership aims to spur growth in the construction sector by offering customers a bundled insurance financing package as a top-up to the asset financing loan.
According to Anjali Harkoo, Head of Client Solutions at Stanbic Bank Kenya, the partnership targets individuals, Small Medium Size companies, and large commercial businesses for easy and attractive loans up to 95-100 percent of the vehicle cost.
“By partnering with Tata Africa, Stanbic hopes to spur growth in the construction sector and support its customers to acquire quality assets. This bundled offering will ease the burden of accessing funds for insuring their assets, giving them peace of mind and allowing them to focus on growing their businesses,” said Harkoo.
The agreement allows customers to acquire Tata units with Stanbic Bank offering up to 95 percent financing for up to a five-year repayment period. The insurance premium will be spread over the full payment period, making it easier for clients to pay, especially when the vehicle has not yet started generating income.
Currently, most banks in Kenya offer an insurance premium with a maximum tenure of 10 months, requiring clients to apply afresh for each insurance financing. The partnership aims to address this issue by offering a more attractive and competitive loan package.
Tata Africa Holdings Kenya has an active population of more than 15,000 commercial vehicles in the country, served by 11 service stations and 23-part retailers. The partnership will enable customers to access specialized services post-purchase, given the rising demand for vehicles used in construction.
As numerous businesses recover from the pandemic, Stanbic Bank Kenya is working towards assisting its clients in getting their businesses back on track through its Vehicle and Asset Finance offering.
