SBM Bank Kenya Partners with Caetano Kenya to Boost Vehicle and Equipment Financing

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SBM Bank Kenya has signed a partnership with Caetano Kenya to expand access to vehicle and equipment financing for individuals, small and medium-sized enterprises (SMEs), and large businesses.

The agreement, formalized through a Memorandum of Understanding (MOU), combines the bank’s lending expertise with Caetano Kenya’s automotive and equipment portfolio to provide a range of financing options.

Under the partnership, customers will be able to access up to 100% financing on selected vehicles and equipment. This will reduce the need for upfront payments, which often act as a barrier for SMEs and individuals.

Financing will cover assets such as commercial vehicles, including trucks and buses with capacities of 21 seats and above, such as school buses. It will also apply to construction equipment, including excavators, rollers, graders, and cranes. Loan amounts will depend on the borrower’s repayment ability.

Repayment terms will extend up to 72 months for most vehicles and up to 84 months for specific assets, such as school buses. Customers will also benefit from a 60-day payment holiday before installments begin.

Interest rates will be charged at the bank’s base rate of 13 percent plus a margin of 3.1 percent per annum for new units and 4 percent for used units, applied on a reducing balance. Processing fees will stand at 1 percent for new units and 2 percent for used units.

The arrangement also incorporates insurance and premium financing, allowing borrowers to spread insurance payments over the loan period. Customers will receive a credit card to manage expenses such as fuel and business-related costs.

Caetano Kenya, a subsidiary of the Salvador Caetano Group of Portugal, has operated in Kenya since 2014. It is the official distributor of brands including Hyundai, Kia, Ford, and Renault, offering passenger vehicles such as the Kia Sportage and Hyundai Tucson, alongside commercial vehicles and construction equipment.

The company also runs the Caetano Express service network across 23 locations in eight cities in Kenya, ensuring spare parts availability and after-sales maintenance. In addition, it offers rentals and leasing solutions through Caetano Renting.

The partnership enables SBM Bank Kenya and Caetano Kenya to provide structured vehicle and equipment financing for a wide range of customers, linking asset ownership to more flexible and affordable repayment options.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.