NIC launches leasing unit

NIC Bank has opened a new leasing subsidiary, NIC Leasing Limited Liability Partnership (NIC Leasing LLP), the arm that will offer customers asset, their financing solutions as well as insurance through their Bancassurance subsidiary.

The Bank received approvals from the Central Bank of Kenya (CBK) to set up the subsidiary in December last year and has been setting the ground to tap into the growing leasing market. It has also announced a partnership with Mercantile Finance to entice more customers to the leasing platform.

NIC Bank Group Managing Director John Gachora is optimistic that the move will set up the new subsidiary to fit into the Bank’s aggressive growth strategy, especially in the Asset Finance space, which has become very competitive over the last few years.

“Leasing is slowly gaining traction in the Kenyan market. Recent leasing initiatives by the government are a positive move towards growing the market and we are confident that NIC Group is well positioned to support this growing market. Small and Medium-size Enterprises (SMEs) are also embracing leasing as a prudent way to finance their assets, as leasing frees up working capital which they can use to invest in other areas of their business,” said Mr Gachora.

NIC Bank’s Executive Director, Corporate Banking, Alan Dodd, said the subsidiary will mainly be looking at assets such as motor vehicles as well as focusing on leasing equipment in the fast-moving consumer goods (FMCG), construction and healthcare sectors.

“Previously we would link customers with leasing companies and provide the financing. With NIC Leasing we are now able to provide the equipment and the financing all under one roof,” said Mr Dodd.