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In a bid to bring financial relief to customers, NCBA Kenya has partnered with Simba Corporation to finance commercial and personal vehicles. The leading financial services company now requires clients to put only five percent of the total vehicle cost down.
Led by James Ndegwa, the company will release the financing through a discounted loan facility of 95 percent of the actual cost of the purchased vehicle.
Kenya’s economy is driven mainly by small- and medium-sized businesses. In 2017, the Central Bank of Kenya (CBK) reported that they constitute 98 percent of all businesses in the country, create 30 percent of jobs and contribute three percent of the GDP.
However, 2020 threatened Kenya’s economy as COVID-19 lockdowns kept businesses on a standstill for months. “This asset finance deal comes at the right time during this pandemic period when businesses are slowly recovering from the ripple effects,” NCBA Group Director of Asset Finance and Business Solutions Lennox Mugambi said.
The financing deal will run for just six months, offering customers a 13-percent interest rate per annum. Before loan repayment starts, the loan will run on a 60-month tenor, with a grace period of 60 days after the vehicle release date, Hapa Kenya reported.
“At NCBA, we are on a continuous journey to forge partnerships that are beneficial to our customers. The businesses that take up this deal will also benefit from the discounted all-inclusive insurance package offered by NCBA Insurance Agency,” he said.
Simba Corporation is an integrated business group headquartered in Nairobi, with controlling interests in motor sales and services, hospitality, investment and financial services. It was founded in 1948 by the late Kenyan industrialist Abdul Karim Popat.
Simba Corp Managing Director of Motors Naresh Leekha said financing has been a key driver for businesses to take up assets that will help them scale up production and recover post-COVID-19.
“We envision this partnership with NCBA will help our customers get the vehicles they need for their businesses. The 60 day repayment holiday will also enable them to manage their cash flows,” he said.
Ndegwa is a leading Kenyan businessman, who has run six companies. He is now chairman at First Chartered Securities Limited and group chairman at NCBA Group.
NCBA Bank Kenya is the Kenyan subsidiary of NCBA Group, a financial services conglomerate in East and West Africa. The group headquarters are located in Nairobi, with subsidiaries in Tanzania, Rwanda, Uganda and Ivory Coast.
