SBM Bank Kenya and Beyond Continents Logistics Forge KSh571 Million Pact to Scale East African Trade Corridors

SBM Bank Kenya has partnered with leading logistics firm Beyond Continents Logistics Limited in a USD 4.44 million deal aimed at unlocking regional supply chain bottlenecks and accelerating cross-border trade across East Africa. The agreement has enabled Beyond Continents Logistics, a key importer and exporter managing USD 1.65 million in imports for Kenya, to acquire a brand-new fleet of 50 heavy-duty Shacman Prime Movers fitted with Bhachu trailers. This strategic move comes at a critical time when local and regional trade under the African Continental Free Trade Area requires robust physical logistics and modern, low-maintenance transport infrastructure to handle rising import and export volumes.

Speaking during the flag-off ceremony, Eric Wambua, Director of Corporate & Institutional Banking at SBM Bank Kenya, emphasized the bank’s commitment to providing agile financial solutions that drive the logistics sector economic growth. Access to flexible asset financing remains a critical catalyst for scaling businesses in Kenya and the wider region. The objective is to enable enterprise growth by offering financial solutions designed around business cash cycles. By providing flexible financing, a sufficient repayment holiday, and structured extended terms, the institution is equipping key players with the capital efficiency needed to expand operations, meet growing trade demands, and keep East Africa’s economic engine moving forward.

To facilitate the acquisition, SBM Bank Kenya structured a tailored SME Asset Finance solution anchored on an extended repayment period of up to 720 days and up to 100 percent financing for new units. The facility is further enhanced by comprehensive commercial vehicle insurance coverage spread over ten months to optimize cash flow management for the logistics company. Lawrence Ndushabandi at Beyond Continents Logistics Limited noted that as international supply chains evolve and import-export volumes scale across local and regional markets, operational reliability remains paramount, and adding high-capacity haulage assets significantly elevates operational reliability.

The transaction underscores SBM Bank Kenya’s robust financial trajectory and balance sheet strength to fund large-scale commercial transactions. In recent financial disclosures, profit before tax soared by 171.3 percent to KSh 548 million, while net profit after tax reached KSh 380.2 million. Operating profit nearly quadrupled, climbing 279 percent to KSh 852 million. The bank’s balance sheet also recorded substantial expansion, with customer deposits growing 24 percent to KSh 94 billion and net loans and advances rising 18 percent to KSh 54.1 billion, pushing total assets to KSh 109.9 billion. Furthermore, asset quality improved significantly as the gross non-performing loan ratio nearly halved, positioning the institution to back ambitious enterprise growth.

Why This Matters

Reliable commercial transport infrastructure serves as the physical backbone for regional integration, directly influencing the velocity of goods across borders. When financial institutions structure credit around the actual operational cash cycles of transport operators, it mitigates systemic liquidity pressures that typically constrain fleet expansion. Providing extended repayment horizons and comprehensive insurance integration allows logistics firms to absorb macroeconomic volatility without compromising asset maintenance or route expansion schedules.

This partnership highlights how strong balance sheet expansion enables tier-two and tier-three commercial banks to directly underwrite major structural shifts in regional trade corridors. By deploying tailored asset financing, lenders actively reduce the friction of moving goods across East African borders, creating a more predictable environment for importers and exporters navigating complex supply chain demands.

Opportunities

• Contractors and Fleet Fabricators: Direct supply opportunities for body builders and trailer manufacturers like Bhachu to fulfill large-scale, multi-unit heavy commercial vehicle orders.
• Logistics Operators: Commercial opening to negotiate structured, cash-flow-friendly asset financing models with institutional lenders rather than relying strictly on short-term commercial debt.
• Financiers and Underwriters: Market validation for developing specialized commercial vehicle insurance packages and extended tenure asset finance products tailored to cross-border logistics firms.
• Supply Chain Integrators: Enhanced capacity to absorb larger import and export volumes, driving efficiency for regional distribution networks under expanding continental trade frameworks.

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