This archive report was first published on 18 May 2020.
On May 18, 2020, Family Bank Kenya and Toyota Kenya announced a partnership to provide financial support to Small and Medium Enterprises (SMEs) offering essential services during the COVID-19 pandemic.
The loan facility, which offers up to 95% financing, will enable SMEs to purchase Toyota Hilux single and double cab pick-ups, as well as Hino trucks, with repayment periods of up to 60 months.
Family Bank Chief Executive Officer Rebecca Mbithi emphasized the importance of supporting SMEs in cushioning the economy from the adverse effects of the pandemic.
"We believe that by supporting the growth of SME businesses, we can cushion our economy from adverse effects," said Mbithi.
Toyota Kenya Managing Director Arvinder Reel added that the partnership targets sectors that are crucial during this period, including manufacturing, logistics, and agri-business.
"This partnership targets SME customers in manufacturing, logistics, and agri-business among other industries as they play their vital role under the current circumstances," said Reel.
Additional business support includes a 60-day repayment holiday period and one-year free insurance for Hilux customers. Customers purchasing Hino 300 or Hino 500 trucks will receive 80% financing with a 48-month repayment period and a 60-day repayment grace period.
The partnership comes at a time when the Central Bank of Kenya has highlighted the need to finance MSMEs facing the coronavirus effects.
Central Bank Governor Patrick Njoroge noted that a credit guarantee scheme is currently being developed to ensure affordable loan rates for MSMEs.
"We do need to have a framework where SMEs can borrow and minimize the risk to the lender," said Njoroge.
