NAIROBI, Kenya, Oct 5 – Financial services provider CIC Insurance Group has signed a deal with KCB Bank Kenya which will see the lender manage the former’s Sh1 billion staff loan portfolio.
In the new agreement signed on Wednesday, the bank will handle the assessment and disbursement of staff loans on behalf of the leading micro insurer.
“Our core competence is providing insurance and related services, and this is where we would like to excel. By partnering and outsourcing non-core services to like-minded organizations like KCB, we greatly improve our efficiency,” CIC Group CEO Tom Gitogo said during the signing ceremony.
The deal will see CIC staff enjoy negotiated loan facilities of six percent per annum on reducing balance to acquire houses and cars.
KCB will also take over existing mortgages and car loans held by CIC staff, under the bank’s car and mortgage schemes.
“This partnership sits well within our business model of strategic collaborations as a way of deepening financial inclusion across the East African region. We believe it is through partnerships that we can build sustainable businesses for tomorrow’s generations,” KCB Group CEO Joshua Oigara said.
CIC has a staff complement of over 500 employees.
CIC, which decides according to set guidelines the qualification for a loan to a staff member, will still retain this role, providing the requisite guidance to KCB which will then process and manage the loan including following up monthly repayments and collateralization of the loan as appropriate.