NAIROBI, Kenya, Jan 30 – Local assembler Isuzu East Africa (Isuzu EA) and Co-operative Bank of Kenya, have announced an asset finance partnership that seeks to address SMEs’ challenge of access to finance and acceleration for business growth.
In the partnership, Isuzu customers are set to enjoy Sh300,000 working capital to empower their business payable in 12 months, a 60-day repayment holiday that will allow SMEs to generate monthly instalments, with re-payment period of 60 months.
Isuzu EA Managing Director Rita Kavashe says the program will enable customers to invest back in their business without affecting cash flow hence growing their business.
“SME businesses in Kenya have suffered for the last 18 months due to the prolonged election cycle and slow-down of financing to this sector by banks. We strongly believe that this partnership with Co-operative Bank will enable SMEs grow their business without affecting their cash flow,” added Rita.
Co-operative Bank Director for Retail & Business Banking, Arthur Muchangi emphasized the need for SMEs to take this opportunity to re-tool and renew their motor vehicle fleet at very affordable terms.
“Our message to customers is simple; if you desire to purchase an Isuzu bus, an Isuzu truck or a pick-up such as the famous D-Max, this is the best time. Through this partnership between Isuzu and Co-op Bank, customers will get up to 95 per cent financing to purchase the vehicle of their choice, and in addition, be given two months to use the vehicle before they begin repaying the loan,” said Muchangi.
Muchangi added that the offer comes with a reasonably-priced comprehensive insurance package priced at 4.75 percent of vehicle value (that includes Political Violence & Terrorism).
In addition, Insurance Premium Finance is available to allow customers pay insurance premiums in easy instalments.
“Over half of last year, Isuzu EA ran a series of ground activations to understand customer needs and expectations. Most customers indicated that buying decisions were affected due to banks not willing to lend due to rate cap legislation among other issues. We, therefore, thought it best to partner with Coop Bank and address the challenges above as the economy recovers from the 18 months recession that affected SMEs,” added Rita.