Giant vehicle manufacturer Toyota Kenya has unveiled its new product targeting Small and Medium Enterprises.
Under the new arrangement, Family Bank in partnership with Toyota Kenya will offer at least 95% financing for SMEs in the crucial services sector during the Coronavirus pandemic.
Under the new arrangement, eligible SMEs will be in a position to acquire the Hilux single and double cab pick-ups payable within 60 months.
According to Family Bank Chief Executive Officer Rebecca Mbithi, the new product will cushion struggling business amid the pandemic.
“We believe that by supporting the growth of SME businesses, we can cushion our economy from adverse effects,” said Mbithi.
On the other hand, 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 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.
The 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.