Uber partners Sidian Bank to provide loans to Kenyan drivers, but there’s a catch

by | Jul 14, 2016

Taxi hailing service, Uber has partnered with Kenya’s Sidian Bank to provide car loans to its most experienced drivers and they hope the model can be rolled out to all its countries of operation within Africa in the coming days.

Sidian Bank for their part in the deal will be offering up to 100% car loan financing, with a maximum amount of KES1.5 million (US$ 14,700).

The deal might appear to be a laudable one for Uber as Sidian Bank is part of Kenya’s biggest listed investments group Centum Investment. However, there seems to be more to the deal to suggest how both parties intend to play hard before drivers can access these loans. While Sidian bank will collect customer satisfaction data from Uber and use it to determine whether the drivers will get access to relatively cheaper loans to buy their own cars, Uber on the other hand is setting a minimum of 500 trips, along with an average passenger rating of at least 4.6 points out of 5. According to the bank, this way, they hope to identify the best performing drivers in order to give them access to the loan service.

Speaking on their plan to spread to other African countries Uber Kenya‘s Acting General Manager, Nate Anderson said “it makes sense to implement similar programs for all of these countries that we are going into in Africa.”

Given the inflexible nature of accessing this loan, I hold reservation concerning the successful implementation of the service in Kenya and Africa at large. But it might be too early to conclude on anything, only time will tell.

Ifeanyi Ndiomewese
Ifeanyi Ndiomewese

Ifeanyi is a desk reporter-turned administrator. Outside of work, I love to read and travel.

On January 22, 2022, be part of the largest gathering of innovators, startup founders, thinkers, programmers, policymakers, and investors in West Africa. Register free.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Recent News

Subscribe to Techpoint Digest!

A daily 5-minute roundup of happenings in African and global tech, sent directly to your email inbox, between 5 a.m. and 7 a.m (WAT) every week day!

Please check your email to confirm your subscription.

Subscribe to Crypto Explorer

A monthly series featuring in-depth analysis on the cryptocurrency sector in Africa

Please check your email to confirm your subscription.

Subscribe to The Experts

A bi-weekly where tech career specialists take us on their journey from newbie to expert, and how they became successful in the industry.

Please check your email to confirm your subscription.

Subscribe to Founder's Table

A monthly series, where we catch up with founders in the startup ecosystem, learn about their failures, successes and a few tricks of the trade

Please check your email to confirm your subscription.

Copy link
Powered by Social Snap