The group has however not disclosed the amount paid for the yard. This as the number of vehicles in auctioneers’ yards continues to grow despite reduced sales.

According to the bank, it has financed well over 4,300 vehicles worth roughly Sh17 billion. Over 80 percent of these are commercial vehicles for use by small and medium-sized enterprises.

The steadily increasing defaults are a clear reflection of the tough times that loan holders are going through in an economy that has seen many lose their jobs and led to the closure of several businesses.

Many lenders are struggling to unload properties seized from defaulters, as potential buyers are unwilling to pay above the minimum bid price stipulated in the law.

With buyers typically seeking to purchase auctioned properties at the lowest cost possible, few takers can match reserved bid prices. 

This is thanks to the Land Act 2012 that prevents banks from selling seized assets at less than 75% of their current market value.

Repeat advertisements for auctions have resulted from delays in the fall of the auctioneer’s hammer even as the properties continue to suffer a loss of value.

Among NCBA’s listed priority growth areas is asset financing, a business that was popular with NIC before the merger.

The lender also introduced an online hire purchase application platform last year. According to NCBA, about 56% of applications originate from there.

The internet-based platform offers a seamless automated process for loan applications to enable its clients to use their personal computers or phones to apply for loans as opposed to visiting a branch.