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Monday, May 25, 2020

Isuzu customers to get cheaper insurance, business loans at Co-op Bank

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Kenyans are set to enjoy more affordable insurance packages and business loans at Co-op Bank. This follows a partnership between leading local assembler Isuzu East Africa (Isuzu EA) and the Co-operative Bank of Kenya on asset finance.

According to a statement from Isuzu and Co-op Bank, this partnership will be seeking to address SMEs’ challenge of access to finance and acceleration for business growth.

In the partnership, Isuzu customers are set to enjoy Ksh. 300,000 working capital to
empower their businesses.

This amount will be payable in 12 months, and with a 60-day repayment holiday that will allow SMEs to generate monthly instalments, with the lowest market negotiation fee of one per cent and the longest re-payment period of up to 60 months in the market.

Isuzu EA Managing Director Rita
Kavashe notes that this program will enable customers to invest back in their businesses.

“Small and medium businesses in Kenya have suffered for the last 18 months due to the prolonged election cycle and the slow-down of financing. This has drastically affected the SMEs’ cash flow and ability to invest in their business,” said Rita. “We strongly believe that this partnership with Co-operative Bank will enable SMEs grow their business without affecting their cash flow.”

Co-operative Bank Director for Retail and Business Banking, Mr. Arthur Muchangi emphasized the need for SMEs to take this opportunity to re-tool and renew their motor vehicle fleet at very affordable terms.

“Our message to customers is simple; if you desire to purchase an Isuzu bus, an Isuzu  truck or a pick-up such as the famous D-Max, this is the best time,” he said.

Through this partnership between Isuzu and Co-op Bank, customers will get up to 95 per cent financing to  purchase the vehicle of their choice, and in addition be given a whole two months to  use the vehicle before they begin repaying the loan.

“This will give customers space to generate cash to service the loan, which is to be repaid over an extended period of four years. For Isuzu customers who also wish to boost the working capital of their businesses will get an additional loan of Ksh. 300,000 to be repaid in 12 months,” said Mr. Muchangi.

Mr. Muchangi added that the offer comes with a most reasonably-priced comprehensive insurance package priced at 4.75 per cent of vehicle value that includes political violence & terrorism. In addition, Insurance Premium Finance is available to allow customers pay insurance premiums in easy instalments.

In the same vein, Ms. Kavashe noted that the partnership with Co-op Bank was crucial, adding that Isuzu EA aims to make it easier for SMEs to access financing for their Isuzu products that SMEs strongly rely on to build, grow and sustain their businesses.

“Isuzu EA, over half of last year, ran a series of ground activations to understand
customer needs and expectations. Most customers indicated that buying decisions
were affected due to banks not willing to lend due to rate cap legislation among other issues. We therefore thought it best to partner with Co-op Bank and address the
challenges above as the economy recovers from the 18 months recession that affected SMEs.” added Rita.

Rita also noted that the challenges of doing business in Kenya cannot be solved by one company or one sector alone. But by pooling resources and sharing knowledge, leveraging on existing and new opportunities to drive long-term growth across the Kenyan economies.

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