In a significant move poised to inject fresh dynamism into Kenya’s economy, NCBA Bank Kenya, a leading player in asset financing, today announced a strategic partnership with Mobikey Truck & Bus Ltd. This collaboration is set to provide comprehensive and flexible asset financing solutions for a wide range of heavy-duty vehicles and machinery, including MAN Trucks, MAN Buses, Randon Trailers, and Hyundai Construction and Mining Equipment. The alliance aims to directly address critical liquidity challenges and stimulate investment across vital sectors, aligning with Kenya’s broader economic acceleration goals.

The signing ceremony, held in Nairobi, marked a pivotal moment for both entities and for the Kenyan business landscape. As the country navigates complex economic headwinds, this partnership emerges as a timely intervention, promising to unlock capital and empower businesses, from burgeoning Small and Medium-sized Enterprises (SMEs) to large commercial entities.

Tailored Financing Solutions: A Catalyst for Business Expansion

The core of this partnership lies in its attractive and flexible asset financing solutions designed to ease the burden of significant capital outlays for businesses. NCBA will now offer financing of up to 100% for new assets and 80% for used assets. This high financing leverage is a crucial incentive, particularly for businesses looking to expand or upgrade their fleets and machinery without depleting their working capital.

Beyond the financing percentages, customers stand to benefit from a generous moratorium period of up to 60 days, providing a much-needed grace period before loan repayments commence. This flexibility is invaluable for businesses, allowing them to generate revenue from their newly acquired assets before incurring repayment obligations. Additionally, the partnership offers competitive processing fees and the convenient option to bundle insurance premiums and other associated costs as part of the total loan amount. This holistic approach simplifies the financing process, making it more accessible and manageable for borrowers.

Mr. Lennox Mugambi, NCBA Group Director of Asset Finance and Business Solutions, emphasized the strategic timing of this collaboration. “We are proud to partner with Mobikey, a respected player in the movable assets space in East Africa. This collaboration will allow us to offer our customers an unrivalled range of asset financing options to grow and expand their operations as they pursue their financial goals,” Mr. Mugambi stated during the signing ceremony. His sentiments underscore NCBA’s commitment to supporting economic growth through targeted financial interventions.

Addressing Economic Headwinds: The Urgency of Capital Access

The timing of this partnership is particularly pertinent given the current economic climate in Kenya. The 2025 Economic Survey by the Kenya National Bureau of Statistics (KNBS) paints a challenging picture for key sectors. The contribution of the construction industry to Kenya’s Gross Domestic Product (GDP) has seen a noticeable decline, dropping from 7.1% in 2020 to 6.3% in 2024. Similarly, the land transport sector experienced a contraction, with its contribution to GDP falling from 11.4% in 2022 to 10.8% in 2024. These declines signal underlying issues that require urgent attention to restore vibrancy and growth.

A major compounding factor in this downturn has been severe liquidity problems plaguing various industries. The 2024 Auditor General’s Report highlighted a critical issue: the construction industry alone accounts for over 51% of all government pending bills. This substantial backlog of unpaid dues to contractors has created a ripple effect, severely deterring new investments and hindering ongoing projects. Contractors, grappling with cash flow shortages due to delayed payments, find it incredibly difficult to access the capital needed to acquire essential equipment and machinery. This, in turn, undermines productivity, slows down project completion, and ultimately stifles overall economic growth.

Mr. Mugambi acknowledged this critical challenge, noting that the flexible financing options available through Mobikey would encourage increased investments among SMEs and large commercial businesses, for whom access to capital has a marked impact on productivity and continued growth. “By providing flexible financing solutions to contractors and logistics companies for the acquisition of MAN trucks, MAN buses, Randon trailers, and Hyundai construction equipment, NCBA is actively addressing the challenge of limited access to capital, thereby empowering businesses and enabling economic growth,” he added. This direct approach to bridging the financing gap is expected to alleviate some of the pressure on these vital sectors.

Sectoral Impact: Driving Growth Across the Economy

The partnership’s reach extends far beyond just the direct beneficiaries in construction and logistics. Enhanced access to transport and construction equipment has a cascading positive effect on other critical sectors of the Kenyan economy:

Construction Industry Revival

The construction sector is a significant employer and a key driver of infrastructure development. With the government’s continued focus on large-scale infrastructure projects under Kenya Vision 2030 and the Bottom-Up Economic Transformation Agenda (BETA), the demand for modern, efficient construction and mining equipment remains high. However, the issue of pending bills has created a bottleneck. By offering up to 100% financing for new Hyundai Construction and Mining Equipment, NCBA and Mobikey are directly enabling contractors to acquire the machinery needed to undertake new projects and complete existing ones. This influx of capital and equipment is expected to boost project execution, create more jobs, and revitalize an industry crucial for national development. Major ongoing projects, such as the expansion of the road network, port facilities, and housing initiatives, will benefit immensely from a more financially robust construction sector.

Boosting Transport and Logistics Efficiency

The transport and logistics sector is the backbone of trade and commerce in Kenya and across East Africa. Efficient transportation of goods, raw materials, and finished products is vital for market access, reducing costs, and enhancing competitiveness. The financing of MAN Trucks and Randon Trailers directly supports logistics companies in upgrading their fleets, improving efficiency, and expanding their operational capacity. This is particularly important for regional trade corridors, where reliable and modern transport infrastructure is paramount. Improved logistics lead to reduced supply chain costs, which can translate to lower prices for consumers and increased profitability for businesses involved in trade and distribution.

Transforming Agriculture: From Farm to Market

Agriculture remains the cornerstone of Kenya’s economy, employing a large percentage of the population and contributing significantly to food security. The partnership’s indirect benefits to agriculture are substantial. Enhanced access to transport equipment facilitates improved rural infrastructure, enabling better connectivity between farms and markets. Mechanization, though not directly financed by this specific partnership, often relies on robust transport networks for equipment delivery and maintenance. More importantly, efficient transport reduces post-harvest losses by ensuring produce reaches markets quickly and in good condition. This boosts productivity for farmers, increases their income, and contributes to overall food security. For instance, better access to trucks means fresh produce from agricultural hubs can reach urban centers or export markets more efficiently, reducing spoilage and increasing value.

Empowering Education: Bridging Access Gaps

The role of MAN Buses in the education sector might seem less direct, but it is profoundly impactful. Reliable and safe school transport enables educational institutions to improve student mobility, particularly in rural or underserved areas where access to schools can be a significant barrier. Buses allow schools to access learning opportunities beyond the classroom, facilitating educational trips, sports events, and inter-school collaborations. Furthermore, improved transport infrastructure enables schools to expand their catchment areas, attracting students from further afield, which can contribute to school growth, better resource utilization, and ultimately, enhanced education outcomes for a wider student population. This aligns with national efforts to improve access to quality education across all regions.

Strengthening SMEs and Commercial Businesses

Small and Medium-sized Enterprises (SMEs) are often referred to as the backbone of the Kenyan economy, contributing significantly to employment and innovation. However, they frequently face substantial hurdles in accessing affordable capital for expansion. This partnership directly addresses this challenge by providing flexible financing options that were previously out of reach for many. By easing the acquisition of essential movable assets, NCBA and Mobikey empower SMEs to scale their operations, enhance productivity, and compete more effectively in the market. This increased investment among SMEs and large commercial businesses is expected to have a marked impact on overall productivity and sustained economic growth.

Strategic Alliances: A Model for Economic Development

The collaboration between NCBA and Mobikey is a testament to the growing trend of strategic alliances between financial institutions and industry players in Kenya. Such partnerships are crucial for de-risking investments, leveraging specialized expertise, and creating tailored solutions that meet specific market needs. NCBA’s strong financial backing and extensive customer network, combined with Mobikey’s deep understanding of the movable assets market and its product portfolio, create a powerful synergy.

Ricardo Teixeira, CEO of Mobikey Truck & Bus Ltd, expressed his enthusiasm for the partnership: “We are delighted to partner with NCBA Bank Kenya to make our movable assets more accessible to businesses and individuals across Kenya. Their strong presence and solid reputation in the market make them an invaluable ally in our mission to empower enterprises with the assets they need to succeed.” He further added, “This partnership expands our capacity to serve customers, combining our expertise in asset financing with NCBA Bank’s robust financial solutions. We have already seen great synergy in our collaboration, and we eagerly anticipate the transformative impact we can have together in enabling business growth and productivity across Kenya.”

This type of collaboration reflects a broader understanding within the Kenyan financial sector that traditional lending models alone may not be sufficient to address the complex financing needs of a developing economy. Asset financing, in particular, has experienced significant growth in Kenya as more enterprises seek to expand operations while mitigating the burden of large upfront capital outlays. It allows businesses to acquire revenue-generating assets without tying up significant cash reserves, thus preserving liquidity for other operational needs.

The Broader Context: Kenya’s Development Agenda

This partnership aligns seamlessly with Kenya’s ambitious national development agenda, particularly Vision 2030, which aims to transform Kenya into a newly industrializing, middle-income country providing a high quality of life to all its citizens by 2030. Key pillars of Vision 2030, such as infrastructure development, enhanced agricultural productivity, and improved access to education, directly benefit from robust asset financing solutions. The Bottom-Up Economic Transformation Agenda (BETA), the current government’s economic blueprint, also emphasizes empowering micro, small, and medium enterprises (MSMEs), boosting agricultural output, and investing in infrastructure – all areas where access to movable assets is fundamental.

By facilitating the acquisition of essential equipment for construction, transport, and other sectors, NCBA and Mobikey are directly contributing to the realization of these national priorities. The partnership’s focus on supporting local businesses and creating employment opportunities further reinforces its alignment with inclusive growth objectives.

Furthermore, NCBA’s broader strategy includes other partnerships aimed at enhancing financial accessibility, as evidenced by its collaboration with MoneyGram to ease international money transfers from Kenya. This demonstrates a holistic approach to financial services that extends beyond traditional banking, seeking to address diverse customer needs and facilitate economic activity at various levels.

The Future Outlook for Asset Financing in Kenya

The asset financing market in Kenya is poised for continued growth. As the economy recovers and businesses look to expand, the demand for flexible and accessible financing options for movable assets will only increase. Factors contributing to this positive outlook include:

• Infrastructure Development: Ongoing and planned government projects will continue to drive demand for construction and transport equipment.
• SME Growth: The increasing recognition of SMEs as economic drivers will lead to more tailored financial products.
• Technological Advancements: The introduction of more efficient and specialized machinery will necessitate financing solutions.
• Regional Integration: Kenya’s role as a regional economic hub will boost demand for logistics and transport assets for cross-border trade.

The partnership between NCBA and Mobikey sets a precedent for how financial institutions and equipment providers can collaborate to stimulate economic activity. By focusing on customer-centric solutions, addressing market pain points like liquidity and access to capital, and aligning with national development goals, such alliances can play a transformative role in fostering sustainable growth and prosperity across Kenya. The success of this initiative will likely serve as a model for similar collaborations, further strengthening the asset finance landscape and empowering a wider range of businesses to achieve their potential.

This partnership is a fantastic example of how targeted financial solutions can have a ripple effect across an economy. It’s not just about selling trucks and buses; it’s about building roads, connecting communities, improving agriculture, and empowering businesses.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

5th August, 2025