NAIROBI,Kenya-Small and medium-sized enterprises (SMEs) in Kenya are poised to enjoy easier access to critical business equipment following a new partnership between NCBA Bank and Car & General.
The collaboration introduces a flexible asset financing plan designed to ease the burden of acquiring expensive machinery.
The financing arrangement will allow customers to secure up to 90% of the value of selected equipment, with repayment periods extending as long as five years.
Additionally, buyers will enjoy a 60-day grace period post-delivery, giving them time to put the equipment to work before making any payments.
Announcing the partnership in Nairobi on Monday, NCBA Group Director for Asset Finance and Business Solutions, Lennox Mugambi, said the deal reflects the bank’s commitment to supporting entrepreneurs with accessible and practical financing solutions.
The deal comes at a time when Kenya’s industrial and construction sectors are rapidly expanding, yet many businesses struggle to meet the upfront costs required for capital equipment.
Despite the construction industry contributing 6.3% to GDP in 2024, sector lending fell from Sh602.7 billion to Sh528 billion.
However, investment appetite remains strong, with approved private building plans in Nairobi hitting KES 221.6 billion.
Car & General CEO Vijay Gidoomal said the partnership is timely and strategic.
“We understand the challenges faced by SMEs and MSMEs when it comes to growth. This financing model removes traditional barriers like collateral and lengthy processes.”
The two organizations emphasized that the financed equipment itself will serve as collateral, a move they believe will encourage more SMEs to modernize operations and stay competitive in a challenging economic environment.
The initiative is expected to stimulate enterprise growth across transport, construction, and agribusiness sectors.
