- Absa and Simba Corp strike a deal to make vehicle financing more accessible to Kenyan businesses.
- SMEs can secure high financing for commercial vehicles, with repayment periods stretching several years.
- Schools purchasing buses will get full financing under terms designed to ease cash flow pressure.
Absa Bank Kenya has partnered with local conglomerate Simba Corporation in a deal aimed at expanding access to vehicle financing for businesses and private consumers across Kenya.
The partnership combines Simba Corporation’s range of automotive machinery with Absa’s revamped Asset-Based Finance framework, giving customers flexible options to acquire productive assets.
Under the agreement, SMEs can access financing of up to 95% of the cost of commercial vehicles, including heavy trucks, buses, light commercial vehicles and corporate fleet solutions. Repayment periods extend up to 72 months.
Meanwhile, educational institutions purchasing school buses qualify for up to 100% financing, with repayment extended to 84 months. The arrangement is expected to ease cash-flow pressure on schools by aligning repayment periods with fee collection cycles.
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Speaking during the signing ceremony in Nairobi, Absa Bank Kenya Director of Business Banking Renato D’Souza said limited access to affordable financing has continued to keep many businesses, particularly SMEs, from acquiring the assets needed for growth.
“For many businesses, particularly SMEs, access to affordable and flexible financing remains a key barrier to acquiring the vehicles and equipment they need to grow, improve efficiency, and compete effectively,” D’Souza said.
He added that the partnership would give customers faster and more flexible financing solutions.
“Through this partnership, we are addressing that challenge by providing clients with easier access to tailored asset financing solutions, faster turnaround times, and greater flexibility to invest in productive assets,” he said.
Additionally, D’Souza said the initiative forms part of Absa’s broader strategy of supporting sustainable economic growth and job creation.
“As part of our revamped Asset-Based Finance 2.0 proposition, launched last quarter, this collaboration reinforces our commitment to empowering SMEs and businesses across Kenya with the tools they need to scale, create jobs, and contribute to economic growth,” he said.
By Bernard Magada
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