Faulu Microfinance Bank has inked a deal with Car and General that will enable the Bank’s customers in the transport business acquire below market rate priced motorcycles.
As part of the deal, Faulu Bank customers, mainly organized in Saccos, will benefit from an innovative solution that includes affordable financing, insurance and the installation of tracking or anti-theft devices on their motorcycles. This comes as the country grapples with the issue of increasing theft of motorbikes.
Additionally, the solution includes a last expense benefit in the unlikely event that beneficiaries perish from road accident related injuries.
On its part, Car and General will avail the motorcycles through its robust distribution network across the country and also extend discounted rates to the Bank’s customers to ensure the bikes are affordable to ordinary Kenyans.
The deal will also see customers enjoy special rates when purchasing spare parts through Car and General’s dealers and agents also spread across the country.
Boda-boda motorcycles in Kenya have become a part of our everyday lives, whether it is ferrying people to their places of work, hospital, school, market or goods and parcels to various destinations.
“We further wish to enrich the solution by extending financial literacy training and bancassurance solutions to our customers once they acquire the bikes while encouraging a savings culture among them in order to help them plan, grow and protect themselves and their loved ones,” said Apollo Njoroge, Managing Director Faulu Kenya.
The use of boda-boda services is even more prevalent in rural areas where public transport may not be so sophisticated and the roads are not well developed.
Commenting on the partnership, Car and General Trading Kenya Managing Director Mr. David Chesoni said: “This partnership presents an opportunity for us to deliver to Kenyans quality motorbikes and parts at an affordable price. We believe this will go a long way in uplifting the economic lives of our youth.”
According to the Motorcycle Assemblers Association of Kenya (MAAK), there are about 600,000 commercial motorcycles currently operating in Kenya, each earning an average of Sh1,000 a day which translates to an annual turnover of Sh219 billion. The industry is one of the biggest drivers of the economy. According to MAAK Chairman Isaac Kalua, each commercial motorcycle supports eight people including the rider’s family and the numerous support service providers like mechanics, tyre suppliers, spare parts dealers and fabricators, implying about 4.8 million Kenyans are dependent on the industry.
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