Absa, Simba Corp Partner to Expand Vehicle Financing

Absa Bank Kenya has partnered with Simba Corporation to make it easier for individuals and businesses to buy vehicles, agricultural machinery and other productive equipment.

The two companies have signed a Memorandum of Understanding (MoU) that will see customers access asset financing packages aimed at helping businesses expand, improve transport operations and invest in machinery without having to raise the full purchase price upfront.

Under the partnership, businesses can finance up to 95 per cent of the cost of commercial vehicles, including trucks, buses, light commercial vehicles and fleet solutions. The loans will be repayable over a period of up to 72 months.

School bus buyers will have access to 100 per cent financing, with repayment spread over up to 84 months, giving schools a little more breathing room when making what can be a sizeable investment.

Individuals buying passenger vehicles will also qualify for financing of up to 95 per cent, repayable over 72 months.

Absa Bank Kenya Director of Business Banking Renato D’Souza said the partnership was intended to address the financing challenges that often prevent small and medium-sized businesses from acquiring the vehicles and equipment they need.

“For many businesses, particularly SMEs, access to affordable and flexible financing remains a key barrier to acquiring the vehicles and equipment they need to grow, improve efficiency, and compete effectively,” D’Souza said.

The partnership will also target Kenya’s agricultural sector, with financing available for tractors, farm machinery, pick-ups and other agricultural mobility equipment.

Customers in the agricultural sector will be able to finance up to 90 per cent of the cost of the equipment, with repayment periods of up to 60 months.

The arrangement comes as farmers face growing pressure to improve productivity and reduce reliance on labour-intensive methods. For a farmer looking to move from a hand hoe to a tractor, access to financing can make the difference between postponing an investment and getting machinery into the field.

Simba Corporation Executive Director Suraj Shah said the partnership would make vehicle ownership more accessible through flexible financing packages.

The deal forms part of Absa’s revamped Asset-Based Finance (ABF 2.0) proposition, which the bank launched with plans to deploy KES 100 billion over three years to individuals and businesses.

The financing programme targets key sectors including manufacturing, trade and logistics, infrastructure, healthcare and education, with the latest partnership widening access to vehicles and equipment.

For businesses, the arrangement could provide a useful financial boost at a time when buying a truck, bus or tractor outright can take a serious bite out of working capital. For Absa and Simba Corporation, it also opens a larger market for financing and selling the assets that keep Kenya’s businesses, farms and institutions moving.