Aspira, CFAO Group Ink Deal For Motor Vehicle Leasing For SMEs

Fintech microfinance company Aspira, a wholly owned subsidiary of Mauritius-based Cim Group, has inked a landmark deal with Loxea Limited, the leasing arm of CFAO Group to enable small and medium enterprises (SMEs) in the country to acquire new vehicles with 100 per cent financing from Aspira through leasing.

Aspira and Loxea said they are democratizing access to new vehicles, starting with an all-inclusive package that will allow SMEs to lease Toyota, Mercedes, Suzuki, and Volkswagen vehicles, Yamaha motorbikes, as well as Actros, Hino, Hyundai, and Sino Trucks, without the need for collateral or guarantees.

“We cannot underestimate the importance of SMEs in Kenya’s economy and consequently having this partnership with easy conditions and affordable rates is fundamental to assist in growing this sector, to foster innovation, create jobs, and uplift livelihoods”, said Cim Group CEO Mark van Beuningen.

Named ‘Gari na Aspira’, this facility will also enable SMEs to benefit from an all-inclusive package consisting of comprehensive insurance, tracking, fleet management systems and full maintenance and repairs.

“We are making strides in our firm commitment to ensure that all our motor vehicles are accessible not just to large companies and institutions but also to medium and small sized businesses which will form the next large organizations. This is in line with our goal to establish and maintain long-term business relationships by adding value to businesses who outsource their vehicle management by ensuring their fleet is operational 24/7,” said LOXEA Managing Director Jennifer Kinyoe.

‘Gari na Aspira’ is meant to serve those among the more than 120,000 SMEs in Kenya that need well maintained motor vehicles and have the repayment capacity but are constrained by high upfront payments and the need for guarantees when applying for financing. It also brings a lower cost of usage when all factors are considered and monetized.

“The operating lease model works very well with SMEs as they do not need to get cash upfront to get the motor vehicles that their business needs. SMEs simply walk in and walk out with the vehicle, and the lease period is spread over 48 months to help them pay as they earn from their business,” Cim Group CEO Mark van Beuningen added.

‘Gari na Aspira’ is available from Loxea, who operate at all CFAO Motors showrooms across Kenya. Loxea Kenya MD Jennifer Kinyoe added; “The SME’s will benefit from our connected service, LOXEA CONNECT, where they will enjoy the benefits of an integrated fleet management solution offering Vehicle Maintenance, Insurance, Tracking, Geolocation, Fuel Analytics, Driver Management, Safety, and Assistance. This will enable the SMEs to focus on their core business while we focus on fleet management.”