SBM Bank Kenya is turning to asset financing to power East Africa’s supply chains.
The lender has backed a $4.44 million (about Sh575 million) fleet expansion by logistics firm Beyond Continents Logistics Limited as it positions itself to tap growing cross-border trade.
The financing has enabled the company to acquire 50 new heavy-duty Shacman prime movers fitted with Bhachu trailers, boosting its haulage capacity to serve importers, exporters and other businesses operating across regional trade corridors.
The deal underscores the bank’s strategy of combining the international banking expertise of its Mauritius-based parent, SBM Group, with local market knowledge to finance businesses supporting trade, transport and logistics across East Africa.
It also highlights the role of commercial banks in financing productive assets needed to move goods efficiently, as regional economies seek to deepen trade under the African Continental Free Trade Area (AfCFTA).
Speaking during the fleet flag-off ceremony, Eric Wambua, director of corporate and institutional banking at SBM Bank Kenya, said flexible financing was critical for businesses seeking to expand their operations and respond to rising demand.
“Access to flexible asset financing remains a critical catalyst for scaling businesses in Kenya and the wider region. Our objective is to enable enterprise growth by offering financial solutions designed around business cash cycles,” he said.
The bank structured the facility under its small and medium-sized enterprise (SME) asset finance offering, providing up to 100 per cent financing for new units and repayment terms extending to 720 days.
The arrangement also includes commercial vehicle insurance coverage spread over 10 months, a structure intended to ease upfront cash-flow pressures as the logistics company integrates the additional trucks into its operations.
Lawrence Ndushabandi of Beyond Continents Logistics said the acquisition would strengthen the company’s ability to handle growing import and export volumes.
“As international supply chains evolve and import-export volumes scale across local and regional markets, operational reliability is paramount. Adding 50 high-capacity prime movers significantly elevates our haulage capacity and operational reliability,” he said.
The expansion comes as businesses depend on road transport to connect ports, warehouses, manufacturing centres and inland markets.
The financing comes as SBM Bank Kenya reports improved financial performance, strengthening its capacity to support business expansion.
The bank’s profit before tax rose 171.3 per cent to Sh548 million, while net profit after tax reached Sh380.2 million. Operating profit increased 279 per cent to Sh852 million.
Customer deposits grew 24 per cent to Sh94 billion, while net loans and advances rose 18 per cent to Sh54.1 billion. Total assets reached Sh109.9 billion, while shareholders’ equity stood at Sh11.1 billion.
The bank also reported an improvement in asset quality, with its gross non-performing loan ratio declining to 17.3 per cent from 32.4 per cent in the previous comparable period.
SBM Bank Kenya, which entered the market in 2017, is part of SBM Group, a Mauritius-headquartered financial services group with a banking heritage spanning five decades.
The Kenyan subsidiary serves retail, SME and corporate customers through its branch network and digital banking channels, positioning itself to support businesses whose financing needs extend beyond working capital to vehicles, equipment and other productive assets.
The latest transaction signals the bank’s interest in logistics as a financing opportunity, with regional trade growth creating demand for greater haulage capacity and more efficient movement of goods across East Africa.
