NAIROBI, Kenya, May 18- Family Bank Kenya has partnered with Toyota Kenya to offer up to 95 percent financing to Small and Medium Enterprises offering crucial services during the COVID-19 pandemic.
The loan facility will allow the small businesses to purchase the Hilux single and double cab pick-ups payable within 60 months.
Family Bank Chief Executive Officer Rebecca Mbithi said that the move is aimed at cushioning distressed businesses suffering from the virus effects.
“We believe that by supporting the growth of SME businesses, we can cushion our economy from adverse effects,” said Mbithi.
Toyota Kenya Managing Director, Arvinder Reel added that the partnership only targets sectors that are really needed during this period.
“This partnership signed between Family Bank and Toyota Kenya targets SME customers in manufacturing, logistics and agri-business among other industries as they play their vital role under the current circumstances the entire world finds itself in to conveniently access capital to purchase both Toyota Hilux single and double cabs and Hino trucks,” said Reel.
Additional business support to these enterprises includes a 60-day repayment holiday period and one-year free insurance for the Hilux customers.
Further, customers purchasing the Hino 300 or Hino 500 trucks will receive 80 per cent financing payable within 48 months plus a 60-day repayment grace period.
The partnership comes at a time when the Central Bank has pointed out the need to finance the Micro, Small, and Medium Enterprises facing the coronavirus effects.
Central bank of Kenya governor Patrick Njoroge said the credit guarantee scheme, a project of Treasury, is currently a work in progress and will ensure that loan rates remain affordable to MSMEs.
“We do need to have a framework where the SME’s can borrow and minimize the risk to the lender so we are thinking of a fund someone in the order of Sh100 billion so this is something we need to work out, give us sometime give us some space we will let you know,” said Njoroge during a post-Monetary Policy Meeting in April.
