MAC East Africa, NCBA offer schools 100% financing for buses

Kampala, Uganda | THE INDEPENDENT | NCBA Bank Uganda has partnered with MAC East Africa to provide financing for schools seeking to acquire buses, easing the upfront capital burden associated with learner transportation.

The School Bus Financing Partnership was launched at Protea Hotel Kampala recently under the theme “Driving the Future of Our Schools”. It brings together NCBA’s financial services and MAC East Africa’s automotive expertise in a package covering vehicle acquisition and after sales support.

Under the arrangement, eligible schools can access financing of up to 100% of the cost of a school bus, with repayment periods extending to 72 months.

The package also provides a repayment holiday of up to 90 days, alongside expedited approval processes intended to align loan repayments with the operational and cash flow cycles of education institutions.

Schools will also receive free servicing and maintenance, comprehensive insurance and free tracker installation, according to the partners.

For many education institutions, acquiring a school bus requires substantial capital beyond the purchase price, including insurance, maintenance, tracking and other operating expenses.

NCBA Executive Director Julius Konyani said the partnership was developed around the investment needs of schools and the need to make asset acquisition more manageable.

“At NCBA, we believe banking is not simply about providing financial products; it is about understanding our customers’ ambitions and providing solutions that help turn those ambitions into reality,” Konyani said.

He said reliable school transportation can improve convenience for learners and parents while enabling schools to serve families across a wider geographical area.

“Through this partnership, we are making that investment more accessible and manageable,” he said.

The financing model also goes beyond the initial purchase by incorporating services intended to support schools throughout the operating life of their vehicles.

MAC East Africa will provide the vehicles together with automotive expertise and after sales support, bringing vehicle selection, acquisition, financing and maintenance into one proposition.

Aditya Arora, Country General Manager at MAC East Africa, said the partnership was intended to combine access to vehicles with financing that allows schools to spread the cost of the investment over a longer period.

“A school bus is more than a vehicle; it is an important part of a school’s ability to provide areliable service to learners and parents,” Arora said.

The partnership comes as schools continue to invest in infrastructure and services to meet the expectations of parents and learners, with transport increasingly forming part of the services institutions provide.

For schools operating their own transport fleets, the financing structure could also allow institutions to preserve working capital for other activities while spreading the cost of a major asset over several years.

The launch also brought together representatives from the education sector and the Ministry of Works and Transport, with discussions focusing on the safety, reliability and responsible transportation of learners.

Apollo Kashanku, Assistant Commissioner for Transport Regulation and Safety at the Ministry of Works and Transport, said access to financing and vehicles should be accompanied by proper safety practices.

“Safe school transport requires more than simply having a vehicle on the road. It calls for reliable vehicles, responsible operators, appropriate safety measures and a commitment to protecting learners,” Kashanku said.

He said partnerships combining financing, quality vehicles and road safety measures could contribute to improving standards in school transportation.

The financing initiative therefore places asset acquisition alongside vehicle management and safety, areas that can determine the long term cost and reliability of school transport.

NCBA said the facility is available to eligible education institutions, with school owners and administrators able to engage the bank for information on eligibility requirements, financing terms and the application process.

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