The NCBA Kenya business customers now stand to benefit from a vehicle loan deal signed between the lender and Tata Africa Holdings Limited.
The pact begins on March 3 up to September 3, 2021, and customers will receive asset finance of up to 95 percent with a repayment period of five years.
NCBA Kenya acting Group Director Asset Finance and Business Solutions Lennox Mugambi said the partnership is aimed at boosting infrastructure development across the country.
“Businesses in Kenya have been severely impacted by the COVID-19 outbreak and so this partnership comes at an opportune time and will go a long way in supporting businesses in the construction and distribution sector. We are encouraging businesses to take advantage of this partnership to bolster their economic livelihoods,” said Mugambi.
Interested buyers will enjoy low deposits, low monthly installments plus competitive insurance rates when purchasing vehicles from Tata Africa and its authorized dealer network across the country.
With calls to boost start-ups to scale down the unemployment rate in the country, the deal targets the Small and Medium-Sized Enterprises (SMEs) and large commercial businesses that have been hit hard by the novel coronavirus pandemic.
“The partnership targets individuals, Small Medium Size companies and large commercial businesses that have been hugely impacted by the COVID 19 pandemic. Currently, Tata has an active population of around 15000 commercial vehicles in the country, which is served by 11 service stations and 23 part retailers. In this partnership, we go hand in hand with customers in making Tata commercial vehicles very affordable,” said Kamal Rohira, Auto Business Head – Tata Africa Holdings (K) Ltd.
TATA Kenya recently opened TATA Authorized Service Stations (TASS) in Eldoret & Kisumu for customers to get access to specialized service post-purchase, given the rising demand for vehicles used in construction.
Kenya’s construction sector recorded a 16.2 percent growth in the third quarter of 2020, compared to 6.6 percent growth in the corresponding quarter of 2019, defying the impact of the coronavirus pandemic which ravaged sectors across the economy.
This is according to a report by the Kenya National Bureau of Statistics (KNBS) which said the growth was witnessed in the volume of cement consumed.
Cement consumption increased by 23.5 percent from 1,553.8 thousand metric tonnes in the third quarter of 2019 to 1,925.2 thousand metric tonnes in 2020.
The import values of construction-related materials such as timber, wood products, bitumen, lime, cement, plumbing materials and glass products increased during the period.
On the same note, credit advanced to this sector grew by 4.9 percent.
