Thursday, February 29, 2024

NCBA acquires car yard, to sell repossessed vehicles directly

NCBA Auction: The NCBA Group has acquired a car yard for storing and selling cars repossessed from its loan defaulters.

The bank whose majority owners are the Kenyatta and Ndegwa families says that the acquisition of the car yard will help it sell vehicles faster and at a better price. This means that the bank will no longer rely on auctioneers to sell the repossessed cars. It also means that the repossessed vehicles will no longer be taken to auctioneers’ yards for public sale.

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“This has seen a 15 percent increase in the selling price of repossessed vehicles and faster turnaround in their disposal as we are now able to conduct basic maintenance like regular cleaning of vehicles and ensuring proper tyre pressure to restore their value,” the bank said.

In its latest annual report, NCBA revealed that it has financed customers to acquire over 4,300 vehicles worth around Sh. 17 billion. 80 percent of these vehicles are being used commercially by small and medium-sized enterprises.

Over the recent few years, banks in Kenya have recorded a rise in the amount of bad loans. This follows a shrinking economy that has left the majority of borrowers unable to meet their debt repayment obligations. The situation has been compounded by the coronavirus pandemic that has left the Kenyan economy on its knees. NCBA Auction.

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