San-Francisco-based tech firm Uber has partnered with Stanbic Bank #ticker:CFC to advance loans to drivers looking to own taxis through a facility that guarantees full financing.
Drivers benefiting from the Vehicle Solutions Programme will be required to repay the loan, which will attract a 14 per cent interest per annum, within a period of three years.
Only drivers with a passenger rating above 4.6 (out of 5) and those who have made Sh300,000 within the last three months qualify for the credit facility.
“At Uber, we are constantly providing opportunities for driver-partners in Kenya. This is why we continue to economically empower our partners...to ensure drivers start their own businesses so that they can make the most when driving with Uber,” said Uber general manager Loic Amado.
Uber also has a similar arrangement with Sidian Bank, majority owned by investment firm Centum #ticker:ICDC, which has so far advanced more than 138 loans.
Sidian's car loans are charged an interest rate of 10.5 per cent per annum, which is lower than the capped rate of 14 per cent offered by commercial banks.
They must also have completed at least 500 trips with Uber.