Listed lender NIC Bank has opened a new leasing
subsidiary, NIC Leasing Limited Liability Partnership, in a bid to tap into the
growing opportunities in the leasing market.
The introduction of NIC Leasing is a natural evolution
for NIC Bank which has a strong heritage in Asset Financing. The subsidiary
will now enable the group to offer customers the asset, their financing
solutions as well as insurance through their Bancassurance subsidiary.
The Bank received approvals from the Central Bank of
Kenya to set up the subsidiary in December 2014. The operating model employed
by NIC Leasing LLP is unique and a first in the domestic market. The model will
see NIC Bank partnering with Mercantile Finance, another wholly owned
subsidiary of the bank.
NIC Bank Group Managing Director John Gachora said the
move to set up the new subsidiary fits into the Bank’s aggressive growth
strategy, especially in the Asset Finance space, which has become very
competitive over the last few years.
“Leasing is slowly gaining traction in the Kenyan
market. Recent leasing initiatives by the Government are a positive move
towards growing the market and we are confident that NIC Group is well
positioned to support this growing market,” said Mr Gachora.
Leasing is catching on in Kenya with the Government
taking the lead especially in the leasing of motor vehicles and medical
equipment. Leasing offers companies various advantages including optimised cash
flow management by freeing up capital which can be invested in other areas of
the business.
NIC Bank’s Executive Director, Corporate Banking, Alan
Dodd, said the subsidiary will mainly be looking at assets such as motor
vehicles as well as focusing on leasing equipment in the FMCG, Construction and
Healthcare sector.
“Previously we would link customers with leasing
companies and provide the financing. With NIC Leasing we are now able to
provide the equipment and the financing all under one roof.
Through NIC Leasing we intend to offer professional
services to our customers from inception, during the lease and at the end,”
said Mr Dodd.
NIC Bank worked with renowned international leasing
consultant Sudhir Amembal to set up the subsidiary.
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