A Stanbic Bank branch on Kimathi Street, Nairobi. FILE PHOTO | NMG
Stanbic Bank #ticker:SBIC has signed a deal with CMC Motors to finance customers buying Ford vehicles from the motor dealer.
Stanbic Bank Kenya head of business and commercial clients Florence Wanja said the agreement would see customers access up to 95 percent financing for up to five years.
“We are proud to be associated with the Ford brand and CMC Motors Group with whom, we believe, we can enable Kenyans to acquire brand new vehicles at affordable pricing and with flexible financing options,” said Ms Wanja in a statement on Tuesday.
The lender will charge customers 10.71 percent interest on the loans on a reducing balance basis for up to a period of 60 months. The turnaround time will be expected not to exceed 72 hours.
Customers will, however,  enjoy a repayment holiday of up to 60 days in the deal that  comes at a time the economy is steadily recovering from the harsh effects of the Covid-19 pandemic.
The deal is expected to boost sales for auto-dealer which were hit by Covid-19 related disruptions.
New vehicle dealers sold 14,250 units last year, marking a six-year high as the industry recovered from the depths plumbed in 2020 as a result of the fallout from the Covid-19 pandemic.
The orders rose 29.8 percent from 10,977 units sold in 2020, according to data from the Kenya Motor Vehicle Industry Association (KMI).
New car dealers including Isuzu East Africa, Toyota Kenya, DT Dobie, and Simba Corporation benefitted from the removal of restrictions aimed at curbing the spread of the pandemic.
The end of travel bans and closures of schools, among other measures, has revived consumer and capital spending, reviving economic activities.
Isuzu recorded a 29.2 percent sales growth in the review period to 5,609 units, representing a 32.7 percent market share.
Isuzu exclusively sells its namesake commercial vehicles comprising pick-ups, buses, trucks and SUVs (sport utility vehicles).