Kenya’s commercial vehicle assembler Isuzu East Africa has signed a deal with NCBA Bank to maintain the interest rate on loans for their vehicle customers at 13{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33}, despite the removal of the interest rate ceiling in late 2019.

The removal of the rate cap late last year has caused uncertainty in the market as customers await to see what action the banks will take.

NCBA and Isuzu have reassured their customers that they will continue to enjoy the 13{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} rate from the bank, which was formed after the recent merger of NIC and CBA banks.

About 80{d59e984f9fbc5c09e4ab0305e27bfa5819922b7230cd324f89a660f78358ca33} of Isuzu East Africa’s sales is in the commercial vehicle segment with the bulk of clients coming from Small & Medium Enterprises (SME) and individuals, who borrow from banks to finance their purchases.