PARTNERSHIP

Isuzu enters deal to maintain interest rate for financing its customers

In Summary

•The move is set to address clients from Small and Medium Enterprises who are very sensitive to the cost of credit.

•Many clients expected the bank to increase the interest rates.

NCBA Group Director of Asset Finance and Business Solutions, Alan Dodd (Second left) and Charles Kariuki, Director Finance & Strategy at Isuzu East Africa sign a partnership deal that will see NCBA maintain the interest rate on loans for their vehicle customers
NCBA Group Director of Asset Finance and Business Solutions, Alan Dodd (Second left) and Charles Kariuki, Director Finance & Strategy at Isuzu East Africa sign a partnership deal that will see NCBA maintain the interest rate on loans for their vehicle customers
Image: COURTESY

Isuzu customers will still be able to access financing from NCBA at a 13 per cent interest rate after the two firms signed a deal to maintain the rate.

The move is set to address clients from Small and Medium Enterprises who are very sensitive to the cost of credit.

The removal of the rate cap late last year caused uncertainty in the market as customers awaited to see what action the banks will take.

 

Our customers will continue to enjoy the 13 per cent rate from the bank to purchase vehicles and service their businesses without fear,” said Charles Kariuki, Isuzu EA Director Finance & Strategy.

Many clients expected the bank to increase interest rates.

“This partnership with Isuzu will offer customers access to affordable credit and therefore stimulate business growth,” said NCBA Group Director of Asset Finance and Business Solutions, Alan Dodd.

In 2016 the government capped interest rates on loans at 14 per cent in a move intended to make credit available to SMEs.

Although the fixed rate created certainty on costs associated with getting loans, banks were more stringent in their assessment of suitable clients.

The control was eventually lifted in 2019 with the Central Bank of Kenya advising banks to be reasonable in revising interest rates.

Isuzu EA has maintained industry leadership for the last eight years with a 44.5 per cent market share by end of 2019.