Good News For SMEs as Isuzu & Co-op Bank Partner To Finance Their Assets

By Soko Directory Team / January 30, 2019



Co-op Bank goldfish Kingdom Securities

Isuzu East Africa (Isuzu EA) and Cooperative Bank of Kenya, have announced an asset finance partnership that seeks to address SMEs’ challenge of access to finance and acceleration for business growth.

Isuzu customers are set to enjoy 300,000 shillings in working capital to empower their business payable in 12 months, a 60-day repayment holiday that will allow SMEs to generate monthly installments, the lowest market negotiation fee of one percent and the longest repayment period of 60 months in the market.

Speaking at the signing and announcement ceremony, Isuzu EA Managing Director Rita Kavashe noted this program will enable customers to invest back in their business without affecting cash flow 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. This has drastically affected the SMEs’ cash flow and ability to invest in their business,” said Rita.

“We strongly believe that this partnership with Cooperative Bank will enable SMEs to grow their business without affecting their cash flow,” added Rita.

Co-operative Bank Director for Retail & Business Banking, Mr. 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 percent financing to purchase the vehicle of their choice, and in addition, be given a whole two months to use the vehicle before they begin repaying the loan. This will give customers space to generate cash to service the loan, which is to be repaid over an extended period of four years. For those Isuzu customers who also wish to boost the working capital of their business, we are providing an additional loan of 300,000 shillings to be repaid in 12 months,” said Mr. Muchangi.

Mr. Muchangi added that the offer comes with a most 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 to pay insurance premiums in easy installments. Isuzu EA Managing Director Rita Kavashe noted that the partnership with Co-op Bank was crucial, adding that Isuzu EA aims to make it easier for SMEs to access financing for their Isuzu products that SMEs strongly rely on to build, grow and sustain their businesses.

“Isuzu EA, over half of last year, 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.

Rita also noted that the challenges of doing business in Kenya cannot be solved by one company or one sector alone. But by pooling resources and sharing knowledge, leveraging on existing and new opportunities to drive long-term growth across the Kenyan economies. The partnership is set to run for the next one year allowing access to Isuzu EA’s wide range of bus, truck and pick up the product line up.



About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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