Nairobi: Absa Bank Kenya PLC and Simba Corporation have signed a strategic Memorandum of Understanding (MoU) to improve access to vehicle and agricultural equipment financing for Kenyan businesses, farmers, and private consumers. The agreement combines Simba Corporation’s extensive portfolio with Absa’s newly revamped Asset-Based Finance (ABF 2.0) framework.
According to Kenya News Agency, the partnership aims to address liquidity constraints that often prevent micro, small, and medium-sized enterprises (SMEs) from acquiring essential capital assets. Businesses can secure up to 95 percent asset financing, repayable over 72 months, to purchase commercial transport units and tailored corporate fleet solutions. Educational institutions can receive up to 100 percent financing for school buses, repayable over 84 months.
Speaking at the signing ceremony in Nairobi, Renato D’Souza, Absa Bank Kenya Director of Business Banking, emphasized that the collaboration addresses financial hurdles restricting capital investment. ‘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,’ D’Souza stated.
D’Souza further explained that the initiative supports sustainable economic growth, industrial competitiveness, and job creation. ‘This collaboration reinforces our commitment to empowering SMEs and businesses across Kenya with the tools they need to scale and contribute to economic growth,’ he affirmed.
The financing facility also focuses on modernizing Kenya’s agricultural value chain, offering up to 90 percent financing for agricultural machinery and related mobility systems. Simba Corporation Executive Director, Suraj Shah, noted that the facility is designed to drive agricultural mechanization and enhance farm yield efficiencies.
Shah highlighted the partnership’s role in making vehicle ownership more accessible, with financing available up to 95 percent for passenger vehicles. ‘For the agricultural sector, the partnership will support the modernization of Kenya’s agriculture industry through financing for tractors, farm machinery, and other solutions,’ Shah stated.
This joint initiative is part of Absa Bank Kenya’s broader asset financing strategy to inject Sh. 100 billion into the Kenyan economy over the next three years, focusing on key sectors, including manufacturing, trade, and education. The new financing package is available through Absa Bank branches and Simba Corporation dealerships across the country.
