Fintech firm aims to solve car financing gap

Abedi Muange Director of Growth at NdaiAfrica, a vehicle financing firm [File]

When the founders of NdaiAfrica developed the idea of vehicle financing a few years ago, they never anticipated the kind of reception that the company received.

Their aim was to make car ownership affordable to a majority of Kenyans. Since its inception three years ago, the fintech firm that offers vehicle financing for mobility entrepreneurs and drivers, has leased out 100 vehicles.

Car loan applicants pay between $90 (Sh10,226) and $110 (Sh12,500) per week for the contract term. Within a span of about 40 months, the applicants are able to fully own the vehicles.

This service also benefits businessmen who can later hire their own drivers. The liability on both parties reduces significantly.

“We buy the vehicle and prepare it for online taxi use. We then lease it to the driver for between 30 and 48 months. We will be monitoring the vehicle and will eventually transfer it to the driver after all terms are met,” said Abedi Muange, the Director of Growth at NdaiAfrica.

The fintech, he said, also solves the problem of taxi owners having to do with thinning margins. The business person who owns the vehicle is also saved the hassle of multiple vehicle repairs, servicing and managing the driver he employs within the period of the contract.

Also, a majority of those lucky to get into vehicle financing agreements have often found themselves at the mercies of fraudsters or high-interest financiers who later auction their vehicles.

Muange said that the fintech firm finances drivers who are willing to be on-boarded onto digital taxi apps such as Uber, Bolt, Little, InDriver or Wasili. 

“Potential customers log in to our website and fill in application forms. They then submit them, including the know your customer (KYC) documents. We then vet them,” he said.

There have been 492 beneficiaries since the company started operations. This figure is the number of drivers and businessmen and the direct beneficiaries of the new car owners. Currently, there are 665 drivers waiting for vehicles.

These vetted and approved drivers await the transition from partnering to fully being self-employed by owning a car. On average 15 applicants are vetted a day to determine their qualifications.  

The company does not accept walk-in customers and everything is done online. They also leverage tech to do background checks.