NAIROBI, Kenya, Aug 24 – Absa Bank Kenya and Simba Corporation have partnered to expand access to financing for commercial and personal vehicles, school buses and agricultural equipment.
Under the agreement, businesses can finance commercial vehicles by up to 95 percent and school buses by up to 100 percent.
Commercial vehicle loans will be repayable over up to 72 months, while school bus financing will have repayment periods of up to 84 months.
Agricultural customers will also be able to finance tractors, farm machinery, pick-ups and other equipment by up to 90 percent, repayable over 60 months.
Speaking during the signing of the Memorandum of Understanding (MoU), Absa Bank Kenya Director of Business Banking Renato D’Souza said the partnership would address financing challenges facing businesses seeking to acquire productive assets.
“For many businesses, particularly SMEs, access to affordable and flexible financing remains a key barrier to acquiring the vehicles and equipment they need to grow, improve efficiency, and compete effectively,” D’Souza said.
“Through this partnership, we are addressing that challenge by providing clients with easier access to tailored asset financing solutions, faster turnaround times, and greater flexibility to invest in productive assets,” he added.
The financing will cover trucks, buses, light commercial vehicles and fleet solutions, with businesses able to borrow up to 95 percent of the asset’s value.
School bus financing will cover up to 100 percent of the purchase price, with repayment structures designed around school cash flows, including quarterly and semester-based payment cycles.
Individuals will also be able to finance passenger vehicles by up to 95 percent, with repayment periods of up to 72 months.
Simba Corporation Executive Director Suraj Shah said the partnership would make vehicle ownership more accessible while addressing delays and high deposit requirements that have affected customers seeking asset financing.
“The partnership will make vehicle ownership more accessible for individuals through attractive financing packages and flexible repayment options. Individuals and families will be able to access financing of up to 95%, repayable over 72 months, to purchase quality passenger vehicles,” Shah said.
Shah said the partnership would improve the financing experience for Simba Corporation customers.
“Simba Corp’s relationship with Absa goes back 30 years and we’ve been very strong with the corporate banking side. And we are happy of a solution that Absa has developed for us in terms of asset financing,” he said.
The partnership targets sectors served by Simba Corporation, including logistics, construction, education and fast-moving consumer goods.
The financing package forms part of Absa’s revamped Asset-Based Finance (ABF 2.0) proposition, under which the bank plans to deploy Sh100 billion over three years to businesses and individuals seeking productive assets.
The wider programme targets sectors including manufacturing, trade and logistics, infrastructure, healthcare and education.
D’Souza said the partnership with Simba Corporation was part of Absa’s broader strategy to expand asset financing.
“As part of our revamped Asset-Based Finance (ABF 2.0) proposition, launched last quarter, this collaboration reinforces our commitment to empowering SMEs and businesses across Kenya with the tools they need to scale, create jobs, and contribute to economic growth,” he said.
The agreement combines Absa’s financing solutions with Simba Corporation’s portfolio of commercial trucks, tractors, pick-ups, passenger vehicles and buses.
