KENYA – Family Bank, a commercial bank, and World Navi, a leading Japanese exporter of used units to Africa and Europe, have signed a deal that will see customers access up to 80 per cent asset financing and 100 per cent import duty financing as they import second hand vehicles.
The partnership will enable individuals, motor vehicle dealers and SMEs import the vehicles directly from Japan, Thailand, Singapore, and South Africa with a repayment period of 48 months.
In addition, customers will also enjoy guaranteed 90-day warrant on the imported vehicle and car valuation, tracking and comprehensive insurance upon arrival of the vehicle.
“As a key player in enhancing access to capital, we are always exploring strategic partnerships that we can mutually leverage and provide opportunities of growth to our customers,” said Family Bank Chief Financial Officer Stephen Karumbi.
According to the Kenya National Bureau of Statistics, second hand cars dominate the local market accounting for 85 per cent of Kenya’s car purchases, with an annual import of up to 90,000 units.
About 80 per cent of these imports are from Japan with other markets being the United Kingdom, United Arab Emirates, Singapore and South Africa.
“As a Bank, through this partnership, we aim to ease the high costs that come with car importation through access to affordable financing and provide a seamless importation process,” he added.
Data from Kenya Auto Bazaar Association indicates that used car prices in Kenya continue to surge given the weak shilling, scarcity of vehicles and rising shipping costs.
“This partnership will see customers directly importing vehicles get assured guarantee of quality through physical inspection, quick shipment through robust shipping plan, warrant guarantee on engine transmission and genuine mileage and accident -free certification for all cars,” said World Navi Managing Director Yoshifumi Sawada.
In March this year, Stanbic Bank Kenya entered into an import financing partnership with two motor-vehicle importers in Kenya, MHH International Limited and World Navi Company Limited.
With the inking of the deal, customers will get up to 80 per cent financing through Stanbic Bank with 20 per cent deposit being paid to the importers, and a payment period of up to four-years.
The deal was expected to make it easier for customers to source vehicles from the UK, Japan, or Australia with MHH International offering end-to-end service from sourcing to delivery of the vehicle and offering an additional three-month warranty.
In 2019, World Navi partnered with Co-operative Bank to launch a financing scheme to enable Kenyans to import second-hand cars.
The partnership was guaranteeing a safe and reliable vehicle importation including three months warranty on the engine & transmission, accident free & genuine mileage certificates and zero risk of stolen parts or non-performance.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals, and insights from Africa’s business, economy, and more. SUBSCRIBE HERE
