•Stanbic Bank on Thursday advertised 72 vehicles for auctioning among them 31 Suzuki Altos common with Uber Chap Chap operators.
•Uber says it has reached out to vehicle partners to assess their support to drivers in need, through reducing the overall cost of their vehicles. Suzuki Altos used as Uber Chap Chaps The number of taxi operators loosing their livelihood is on the rise as banks close on car loan defaulters, whilst businesses continue to bear the brunt of Covid-19.
On Thursday, Stanbic Bank advertised about 72 vehicles set for the auctioneer’s hammer, among them 31 Suzuki Altos common with Uber Chap Chap operators.
The lender entered a partnership with Uber and CMC Motors in 2018 to offer drivers with Sh835,000 low-cost vehicles at 14 per cent interest, payable over three years.
In its latest monthly Purchasing Managers’ Index, released on June 4, Stanbic noted business conditions have worsened in each month of 2020 , with the latest deterioration marked by historical standards.
May saw the headline PMI rise to 36.7, from 34.8 in April, to signal a further steep decline in overall business conditions across the Kenyan private sector.
Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.
"We still expect the epicentre of Covid-19 to be felt in Q2, with respect to economic activity. Business conditions have contracted for five consecutive months now,” said Jibran Qureishi, Regional Economist East Africa, Stanbic Bank.
NCBA Group has also put up 51 commercial and personal vehicles for sale.
It recently confirmed acquiring a yard for storing cars repossessed from loan defaulters, signaling a rise in asset seizures in the country where businesses and households have been hard-hit by effects of Covid-19.
More than 200 vehicles countrywide have been waved towards the hammer in the past one week, an indicator of tough economic times where individuals have failed to service their loans.A huge number of saloon cars being auctioned are of between 1000cc and 1300cc, preferred for taxi businesses due to their low consumption.Most taxi drivers operating on ride-hailing apps such as Uber, Bolt, and Little have reported low business in recent times, especially since the nation-wide curfew and restriction of movement was imposed to curb the spread of the virus.“I used to take home even Sh3,000 after re-fueling my car and meeting other expenses. Since coronavirus hit us, getting even Sh1,000 after expenses is a struggle,” Kenneth Kimani, a […]