Islamic lender Gulf African Bank (GAB) has partnered with motor dealer Toyota Kenya to offer finance to customers buying Hino trucks and buses as well as Hilux pickups.
GAB Managing Director Abdalla Abdulkhalik said the one-year deal will see customers access up to 90 per cent funding in the payment scheme that will require buyers to repay the loan in six years.
“The financing is open to everybody. Motor vehicles being purchased should not be older than seven years from the year of manufacture,” said Mr Abdulkhalik in an interview with Business Daily on Tuesday.
The lender will charge customers 13 per cent interest on the loans with a turnaround time expected not to exceed 72 hours.
Customers will, however, not enjoy a repayment holiday in the deal that excludes public service vehicles.
The deal is expected to boost sales for the auto-dealer which were hit by Covid-19 related disruptions.
New vehicle dealers including Toyota Kenya, Isuzu East Africa and Simba Corporation reported a 16 per cent sales slump to 11,086 units last year compared to 13,199 units in 2019.
The KRA data shows that Toyota is the most popular vehicle make in Kenya, accounting for 54 percent of all auto imports.