NCBA has today entered into a partnership with commercial vehicle and equipment distributor, Mobikey Truck and Bus Ltd, aimed at expanding asset financing options in MAN Trucks, MAN Buses, Randon Trailers, Hyundai Construction and Mining Equipment.
The two companies signed a deal to offer loans that cover full costs on new vehicles and equipment, and loans covering up to 80% of the costs for used assets. According to a press release on the partnership by NCBA, the financing package comes with affordable processing fees, a customer-friendly grace period of up to 60 days, and an option to include insurance premiums and other related charges like registration, license, and tracking fees. This appealing package by the alliance is not only set to offer competitive asset financing options to their customers but also spur competition in the asset financing industry.
“We are proud to partner with Mobikey, a respected player in the movable assets space in East Africa. This collaboration will allow us to offer our customers an unrivalled range of asset financing options to grow and expand their operations as they pursue their financial goals,” said NCBA Group Director of Asset Finance and Business Solutions, Mr. Lennox Mugambi.
Benefits to different sectors of the economy
The availability of reasonably priced financing for Hyundai mining and construction equipment is expected to support the purchase of contemporary machinery, which in turn leads to more job opportunities, better infrastructure development, quicker project completion, and higher productivity. In contrast to its 3.0% rise in 2023, the construction industry saw a 0.7% decline in 2024. Structural limitations like restricted access to reasonably priced financing and decreased investor confidence were major contributors to the decrease.
Financing for MAN buses, trucks, and trailers will make it easier for public transport and logistics companies to expand. Bus operators can easily finance new buses to increase efficiency, while the upgrade of trucks by logistics companies will enhance supply chain reliability. In 2024, the number of new registered Lorries/trucks and buses declined to 5,456 and 1,452 from 13,635 and 3,122 in 2023, respectively. Limited access to finance and investor caution largely contributed to the decline. This new initiative by NCBA and Mobikey is set to address this challenge.
“By providing flexible financing solutions to contractors and logistics companies for the acquisition of MAN trucks, MAN buses, Randon trailers, and Hyundai construction equipment, NCBA is actively addressing the challenge of limited access to capital, thereby empowering businesses and enabling economic growth,” he added.
Mobikey’s mission
The establishment of a joint venture with NCBA will help the transport solutions provider realize its mission in empowering businesses across Kenya, Uganda, and Tanzania with reliable movable assets that will help customers grow and succeed.
“We are delighted to partner with NCBA Bank Kenya to make our movable assets more accessible to businesses and individuals across Kenya. Their strong presence and solid reputation in the market make them an invaluable ally in our mission to empower enterprises with the assets they need to succeed,” said Mobikey CEO Ricardo Teixeira.
Also Read: NCBA and KAM Partner in Bid to Champion Value Chain Financing for Manufacturers
