KCB Bank #ticker:KCB has partnered with Tata Africa to provide vehicle financing for construction trucks amid an increasing demand pushed by government infrastructural projects.
Under the deal, KCB Bank will fund up to 95 percent of the loan with a repayment period of six years for customers buying vehicle in the one year.
The partnership follows an ongoing construction of roads and bridges by the government and rising private sector activity.
“This move aims to ensure that customers get access to specialized services post-purchase, given the rising demand for vehicles used in construction,’’ said Tata Africa Holdings Auto Business head Kamal Rohira.
“The partnership targets individuals, small-medium size companies, and large commercial businesses for easy and attractive loans of up to 95 percent of the vehicle cost. Delivering uptime to customers is our key objective and we will ensure that our customers are continuously served with complete satisfaction.’’
The company has recently partnered wot NCBA Bank #ticker:NCBA and Stanbic Bank #ticker:SBIC to finance the vehicles.
The construction sector has recorded an uptick due to state- run projects such as Nairobi Expressway and real estate, marked by proceeds from high cement consumption.
The sector last year recorded a growth of 11.8 percent compared to a 5.6 percent growth in 2019.
The partnership will also see companies dealing with commercial buses, SUVs and defence vehicles will also receive tracking, insurance package and a free driver life insurance limit of one million over the entire loan period from KCB Bancassurance intermediary.
The loan has two-month payment holiday.
The agreement begins on November 10 and will last for one year.“KCB Group has positioned all its products to complement the needs and financial capabilities for our customers’ business growth and we will continue to forge more partnerships like this,” said KCB Bank Kenya Corporate Director Esther Waititu.KCB customers under the Shariah compliant banking service will also be able to purchase trucks from TATA Africa through the partnership.TATA Kenya is served by 11 service stations and 23 part retailers and recently opened TATA Authorized Service Stations in Eldoret and Kisumu.