Co-op Bank and Isuzu ink vehicle financing pact for schools, MSMEs

From left: Group CEO CIC Insurance Patrick Nyaga, Isuzu East Africa MD Rita Kavashe and Co-operative Bank Retail and Business Banking Director William Ndumia at the signing on Wednesday. [Wilberforce Okwiri, Standard]

Co-operative Bank (Co-op) has inked a deal with Isuzu East Africa, which will see the lender extend credit to schools and micro, small and medium enterprises (MSMEs) to acquire vehicles on attractive terms.

The asset finance scheme, unveiled on Wednesday, is designed for schools and businesses that desire easier financing terms to assist them in coping with the current cash-starved operating environment.

The bank noted that many businesses continue to record reduced cash flows, which calls for easier financing terms.

During the launch at Isuzu East Africa’s offices along Mombasa Road in Nairobi, the company’s Managing Director Rita Kavashe said: “Today, Isuzu East Africa, has partnered with Co-operative Bank to provide solutions that will address the needs of our customers during these challenging economic times. We are thrilled to launch a Financing scheme that provides a ninety-five per cent financing option for Isuzu N-series, Isuzu F-series and Isuzu pick-ups TFS and TFR Series.”

She noted that the  current operating environment has adversely affected the ability of many schools and businesses to secure necessary cash deposits for asset purchases, thereby limiting their ability to initiate or expand investments in critical assets.

“The partnership aims to make vehicle acquisition easier for Kenyan schools and businesses with 100 per cent and 95 per cent asset financing, respectively,” explained Ms Kavashe.

Co-op Bank Managing Director Gideon Muriuki said the partnership is designed to assist educational institutions and businesses acquire the critical assets they need within their current financing abilities.

 “We have observed that a good number of our business customers are giving priority to financing their stocks and operations. We have, therefore, made available an additional digital credit of up to Sh1 million for MSME customers and Sh2 million to schools over and above the 95 per cent and 100 per cent asset financing,” said Mr Muriuki.