Isuzu, Coop Bank, and CIC Insurance partner to provide schools and MSMEs with vehicle financing services




Isuzu East Africa, Cooperative Bank and CIC Insurance, have announced an asset finance scheme designed for schools and businesses facing weakened financial capabilities. The current economic challenges have drastically affected cash reserves of most schools and businesses, necessitating tailor-made and better financial terms for operational continuity. 

At the launch event of the asset financing scheme Isuzu East Africa’s, Managing Director, Rita Kavashe said: “Today, Isuzu East Africa, has partnered with Cooperative Bank to provide solutions that will address the needs of our customers during these challenging economic times. We are thrilled to launch a joint asset financing partnership that provides a ninety five percent financing option for Isuzu’s N-series, F-series, Pickups, TFS and TFR Series.”

(TOP: L- R – Group CEO CIC Insurance, Patrick Nyaga; Isuzu East Africa’s MD, Rita Kavashe; and Coop Banks’s Retail and Business Banking Director, William Ndumia, addressing the press after signing Joint Assent Finance Partnership for MSMEs, schools and learning institutions).

With the economic slowdown experienced in the country, cash circulation has shrunk, making it challenging to secure necessary deposits for asset purchases. This financial constraint limits customer’s ability to initiate or expand investments in critical assets. The Isuzu and Cooperative Bank scheme provides schools and businesses the financial support to raise enough deposits for purchasing new vehicles.

“The partnership aims to address current economic challenges to cushion Kenyan schools and businesses with 100% and 95% asset financing respectively,” Rita explained.

On his part, Cooperative Bank MD and Group CEO Dr Gideon Muriuki, observed that the tough economic times have resulted in many customers not being able to raise capital for deposits. Repayments on shorter loan terms have also been challenging since the interest rates are high.

“We have observed that due to high monthly loan installment terms in the market, customers have prioritised other functions in their business such as raising funds for their stocks and normal operations. We have therefore added a digital credit of up to Kshs 1 million for MSME customers and Kshs 2 million to schools over and above the 95% and 100% asset financing.” said Dr. Muriuki.

“We are happy to announce that customers will have extended repayment tenure of 72 months and access to flexible digital working capital of up to Kshs 1 million, disbursed after approval and purchase of assets to enable them to restock their businesses with an optional repayment holiday of 60 days,” he added.

Dr. Muriuki explained that schools and learning institutions will have a one term moratorium when they purchase their buses. Repayment tenure has also been extended to 72 months on termly basis which adds up to 18 terms at 0% processing fee and a working capital of up to Kshs 2 million.

The Isuzu East Africa, Cooperative Bank, and CIC Insurance joint asset financing is set to unlock exponential business growth for their customers across the country.

“Under this partnership, CIC Insurance will offer insurance package for commercial vehicles at an average rate of %4 and 3.5% for schools,” said Patrick Nyaga, the Group CEO, CIC Insurance.

Isuzu East Africa is the leading motor vehicle assembler in East Africa, selling a wide range of Isuzu vehicles. The company is starting out from a solid foundation established by the Isuzu brand’s automotive excellence over the last 45 years. The brand has attained strong leadership in this market, selling over 150,000 units since the first Isuzu vehicle rolled out of its Nairobi assembly plant in 1977.

With over 15 models in its line-up, the Isuzu brand has dominated the new vehicle segment for 12 years in a row since 2012, achieving a market share of 60% in the commercial vehicles segment by end of 2023. This is a testimony to customer confidence in its vehicles and excellent aftersales service. With the financial and technical support resources behind it, Isuzu East Africa is well established to meet customers’ needs through an extensive dealer network (Sales, Parts, and Service) in all the major towns in East Africa.

In 2024, Isuzu East Africa became the official importer, assembler, distributor, and full-service provider of UD Trucks brand in Kenya.

The Co-operative Bank Group (Co-op Bank) is licensed to carry out the business of banking under the Banking Act. The Bank was listed in the year 2008 wherein it is now the largest Co-operative Bank in Africa. The group is one of the largest financial institutions in the region and has 5 subsidiaries namely; Kingdom Securities, Co-optrust Investment Services, Co-op Consultancy & Bancassurance Intermediary, Kingdom Bank and Co-operative Bank of South Sudan. The bank also owns a 24.8 per cent stake in CIC Insurance Group and 25% of Co-op Bank Fleet Africa Leasing. The Bank’s footprint across Kenya and region includes: 180 Branches in Kenya, 4 in South Sudan, 542 ATMs and over 17000 Co-op Kwa Jirani agency banking outlets supporting our growing client base.

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