Isuzu, Cooperative Bank ink Sh2Billion deal on asset finance

By Victor MUJIDU

Isuzu East Africa, Cooperative Bank and CIC Insurance have announced an asset finance scheme designed for schools and businesses facing weakened financial capabilities.

The current economic challenges have drastically affected cash reserves of most schools and businesses, necessitating tailor-made and better financial terms for operational continuity.

 At the launch event of the asset financing scheme Isuzu East Africa’s, Managing Director, Rita Kavashe said that:“Today, Isuzu East Africa, has partnered with Cooperative Bank to provide solutions that will address the needs of our customers during these challenging economic times. We are thrilled to launch a joint asset financing partnership that provides a ninety five percent financing option for Isuzu’s N-series, F-series, Pickups, TFS and TFR Series.”  

With the economic slowdown experienced in the country, cash circulation has shrunk, making it challenging to secure necessary deposits for asset purchases. This financial constraint limits customer’s ability to initiate or expand investments in critical assets. The Isuzu and Cooperative Bank scheme provides schools and businesses the financial support to raise enough deposits for purchasing new vehicles.

“The partnership aims to address current economic challenges to cushion Kenyan schools and businesses with 100% and 95% asset financing respectively,” Rita explained.

On his part, Cooperative Bank Managing Director, and Group CEO Dr Gideon Muriuki, observed that the tough economic times have resulted in many customers not being able to raise capital for deposits. Repayments on shorter loan terms have also been challenging since the interest rates are high.

“We have observed that due to high monthly loan installment terms in the market, customers have prioritised other functions in their business such as raising funds for their stocks and normal operations. We have therefore added a digital credit of up to Ksh.1 million for MSME customers and Ksh.2 million to schools over and above the 95% and 100% asset financing.” said Dr. Muriuki.

“We are happy to announce that customers will have extended repayment tenure of 72 months and access to flexible digital working capital of up to Ksh 1 million, disbursed after approval and purchase of assets to enable them to restock their businesses with an optional repayment holiday of 60 days,” he added.

Dr. Muriuki explained that schools and learning institutions will have a one term moratorium when they purchase their buses. Repayment tenure has also been extended to 72 months on termly basis which adds up to 18 terms at 0% processing fee and a working capital of up to Ksh 2 million.

The Isuzu East Africa, Cooperative Bank, and CIC Insurance joint asset financing is set to unlock exponential business growth for their customers across the country.

“Under this partnership, CIC Insurance will offer insurance package for commercial vehicles at an average rate of %4 and 3.5% for schools,” said Patrick Nyaga, Group CEO CIC Insurance.