Companies

Uber in Sh10 billion financing deal with Sidian Bank

Uber

Sidian Bank is hoping to grow its loan book by tapping into demand created by the revolutionary online taxi-hailing company. PHOTOS | FILE

Sidian Bank has launched a Sh10 billion fund that will see Uber drivers access car loans at below average market rates.

The lender will provide of up to a maximum of Sh1.5 million per Uber driver, repayable in three years.

The loans will be advanced at a rate of 10.5 per cent per annum, which is below the current average lending rate of about 18 per cent.

Centum Investment Group will provide the cash that will be released over the next three years through its subsidiaries, Sidian Bank and asset leasing company Zohari.

Sidian Bank is hoping to grow its loan book by tapping into demand created by the revolutionary online taxi-hailing company.

“We are glad to be part of this deal, which is enabling enterprises to grow. In addition to financing, we will also provide technical assistance to the beneficiaries of this arrangement. This deal is part of our efforts to consolidate our new positioning that is focused on enabling individuals to own their tomorrow,” said the Sidian Bank Chief Executive Officer Titus Karanja during Wednesday's launch.

The car loans will also be accessible to other cab drivers with a good credit record and are able to put down a 10 per cent of the vehicle’s value.

Acting General Manager for Uber Kenya Nate Anderson said the Sidian Bank fund offers drivers a means to buy reliable, high-quality cars to establish and grow their businesses.

“We are building an even more sustainable ride-sharing network in Kenya which moves us forward towards achieving our vision of being a first-choice transport solution for everyone in the country,” said Mr Anderson.