The transport and storage sector grew by 8.8% in 2018. The sector is a critical cog in the economic wheel. Transportation, specifically, serves almost every other sector in the economy. Getting from point A to B can only be served by obtaining a transport solution. Road transport accounted for 62% of the value output in 2018.
It therefore goes without saying the automotive industry in Kenya is at the heart of its economy. Growth in the transport and storage sector reflected on the demand of motor vehicles in 2018. The number of new registered vehicles grew by 12% to 102,036 vehicles.
The banking sector has long been a supporter of the transport industry. The sector has received extensive financing as motor vehicles being financed form the security itself – hence asset financing. According to CBK, the transport and communication sector received financing accounting for 7.58% of all loans advanced.
Credit Bank offers financial solutions suited to the automotive industry. As a growing sector, the bank has confidence in asset financing solutions. The bank’s approach is however geared towards their mission which aims to have a greater socio-economic impact. “This is further confirmed by the Automotive Industry Excellence Award, Financing Category, recently accorded to the Bank” says Monica Chege, the Bank’s Marketing Manager.
The awards were established to recognize and celebrate the key players in the transport sector. Further, the awards recognise institutions who have over the years achieved outstanding results in their niche and have positively impacted the lives of their clients. Credit Bank was awarded the Automotive Financing Award.
“For us as Credit Bank, this was a proud moment. Over the years, we have been presenting financing solutions geared towards enabling businesses and individual grow in their respective sectors. Many have benefitted from our financing solutions that have gone further to create jobs for many including drivers, turnboys, mechanics and everyone along the automotive value chain,” asserts Monica.
The Bank is further committed to the bigger picture. This does not just include direct financing of purchase of motor vehicles but an eye on manufacturing and support for the local sector. The transport sector has a long value chain that has seen the establishment of businesses. Monica further says that, “our financing goes beyond the vehicles. Our support for entrepreneurs is at the core of who we are as a Bank. Businesses especially importers of the vehicles and parts thereof can benefit from our expanded range of financial solutions. This includes Letters of Credit, Documentary Collections, Pre and Post-shipment financing among other Trade Finance solutions. Other entrepreneurs in the value chain can benefit from our recently established ecosystem dubbed the Entrepreneurs’ Hub. Here, your business can expect to grow in all its facets.”
Realising the importance of a value chain is key to sustainable financing. Credit Bank sees the award as a steppingstone to a brighter future for the transport sector. The Bank remains committed to serving excellence and promises to continue providing innovative financial solutions.