SBM Bank Kenya has signed a Memorandum of Understanding (MOU) with Tata Holdings Africa (Kenya) that will see their customers access 100 per cent financing for vehicle purchases.

The MOU will see the customers of SBM Bank and Tata Holdings receive preferential rates and enjoy a loan repayment period of up to six years.

Key features of the asset financing facility include a one per cent processing fees, an attractive interest rate, a 60-day payment holiday and an extra access to insurance premium financing.

SBM Bank says the facility is set to be among the most competitive options in Kenya’s automobile industry and targets individuals, SMEs and large commercial businesses.

SBM Bank Kenya Deputy CEO and Chief Commercial Officer Jotham Mutoka says the deal with Tata Holdings Africa (Kenya) Ltd will enable their customers to own vehicles affordably.

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“Our aim is to give our customers a financing option that will help them achieve their business objectives in a convenient manner,” said Mutoka.

He added, “Asset financing as enabled through this MOU is a win for us today and we hope it will bring our customers’ financial dreams one step closer.”

“Delivering uptime to customers is our key objective and we will ensure that our customers are continuously served with complete satisfaction,” said Tata Africa Holdings (K) Ltd Auto Business Head Kamal Rohira.


He added, “TATA has an active population of more than 15,000 commercial vehicles in the country, which is served by 11 service stations and 23-part retailers. In this partnership, we go hand in hand with customers in making Tata commercial vehicles very affordable.”

TATA Kenya recently opened a new branch in Kisumu to enable its customers to gain access to specialized services after purchase amid rising demand for vehicles used in construction.

The MOU will see customers seeking to buy vehicles able to repay their loan in 72 months, while those buying school buses will get an 84-month repayment period.

The one-year deal commencing on May 2, 2023 will also see customers get a credit card to use to fuel their cars and other business expenses to better plan financially in this period.

According to the Kenya Motor Industry Association (KMIA), new vehicle sales surged in Kenya by 14.3 per cent in 2022 compared to in 2021, with a total of 19,244 units sold.