Chinese heavy machinery manufacturer XCMG has partnered with commercial banks to provide up to 100 percent financing for buyers seeking to purchase equipment like excavators, graders and cranes.
Under the deal, XCMG general manager for machines sales Emmanuel Masika said customers will enjoy a grace period of between six months and one year.
“We have partnered with a number of major banks including SBM, Stanbic and NIC Bank where clients can work with the institutions for between six months and a year without paying,” said Mr Masika.
“Then after a year the clients will have to pay for the services. There is a problem of cash flow in the country and the industry is growing,” he added. The firm had earlier said it is targeting a growing infrastructure works in counties.
It is seeking deals with contractors in counties in the quest for billions of shillings the national and county governments are spending to revamp roads and other infrastructure. The building of storey buildings in counties has created demand for equipment like excavators, loaders and dump trucks, attracting the eye of firms like XCMG — which is now the sixth-largest equipment maker globally. To boost uptake XCMG was tipped to adopt the leasing model.
“Regarding lower cost of equipment and machinery, I challenge XCMG to evolve a leasing model that can further lower construction and earthmoving costs,” said Transport, Infrastructure Housing and Urban Development PS Paul Maringa in a statement.
“Already the Government has adopted the leasing model for motor vehicles. I believe it is possible to take a leaf from the Government motor vehicle leasing model and create a new system of leasing that will assist construction start-ups especially those owned by our youth.’’