Asset Finance: How one farmer used the facility to transform his business
For six years, Elisha Kibet was a small-scale farmer managing a six-acre farm in Uasin Gishu County that he had inherited from his late maternal grandfather. He kept dairy cattle, poultry and sheep.
“I was utilizing two acres of the farm. I kept two dairy cows, 50 chickens, 10 ewes and five rams,” says the 46-year-old father of three.
From selling milk, eggs, chicken and wool, Kibet earned about Sh21,000 per month.
“I was not making much, but since I didn’t pay rent, my income was enough for my family and me,” he says.
A business growth opportunity hidden in idle land
In 2023, Kibet began thinking about expanding his farming enterprise.
“I had an extra four acres that I was not using. If I was making Sh21,000 from two acres, I thought I could raise my income to at least Sh60,000 by utilizing the remaining four acres,” he says.
His first idea was to lease out the idle land. He spread the word throughout his village but abandoned the plan after receiving disappointing offers.
“Most customers offered Sh15,000 per year, which translated to Sh60,000 for all four acres. That would only have increased my monthly income by about Sh5,000. It simply wasn’t worth it.”
Instead, his wife, Doris Kibet, a teacher at a local primary school, encouraged him to expand his own farming operations.
“She believed I would earn much more by utilizing the land myself. She suggested growing maize, wheat and beans.”
The decision marked the transition from small-scale to medium-scale farming.
Asset finance’s biggest obstacle: Raising capital
To expand successfully, Kibet needed modern farm machinery and quality farm inputs. His first target was a New Holland 4WD TT75 tractor valued at Sh3.5 million.
“My wife had saved Sh220,000 in her chama while I had Sh170,000 in my Equity Bank account. That was nowhere near the Sh3.5 million required,” he recalls.
“I would probably have given up were it not for my wife, who encouraged me to share my business idea with my bank.”
How asset finance made expansion possible
When Kibet visited his Equity Bank branch in Eldoret, he discovered that purchasing the tractor did not require raising the full amount upfront.
“Out of the Sh3.5 million, the bank agreed to finance up to 90 per cent. That meant I only needed to raise Sh350,000,” he says.
After presenting his bank statements alongside his wife’s payslips, the financing package was approved.
Within less than two weeks, the financing was finalized through a partnership between the bank and the tractor dealer.
“In less than two weeks, the tractor was already tilling my land.”
Higher productivity, higher income and faster growth
The investment immediately transformed Kibet’s business.
His dairy herd has grown from two cows to five. He now keeps 100 chickens and 16 sheep, comprising nine ewes and seven rams.
“My farm is now known as Kibet Mashambani Farm,” he says proudly.
His crop yields have also improved significantly.
Two acres now produce at least 38 bags of maize per acre, each weighing 90 kilograms. The remaining two acres produce nine 90-kilogram bags of beans per acre.
Beyond farming his own land, Kibet also hires out his tractor to neighbouring farmers.
“I have been tilling and harrowing farms in my community for hire, which has increased my income and enabled me to accelerate my loan repayments.”
Using business assets to unlock more financing
Kibet’s success has encouraged him to plan his next investment.
He recently approached Equity Bank to explore financing for an Isuzu FRR truck that would transport produce from his farm and neighbouring farms to markets in Eldoret, Nakuru and Nairobi.
One of the advantages of asset financing, he says, is flexible collateral requirements.
“I used my tractor as collateral. If I get the Isuzu truck, the bank will also allow me to use it as collateral.”
Why are more SMEs choosing asset finance
A spot check by Bizna Kenya shows Kibet’s experience is far from unique. Equity Group has been boosting up its asset financing packages to grow small and medium businesses across the country. The lender has financing packages that are tailor made for various assets. Equity Group has a wide array of asset financing solutions to support the growth of small businesses across Kenya.
The lender provides financing for:
- Agricultural equipment and machinery
- Commercial vehicles
- Construction equipment
- Industrial plant and machinery
- Office equipment
- IT infrastructure
- Entrepreneurs and agri-preneurs also benefit from flexible collateral arrangements, including using the financed asset itself as security.
Flexible financing designed for business growth
Equity has packages offering the full 100 percent financing. This includes 100 percent financing for farm equipment such as tractors, lorries, pick-up trucks and even matatus.
The facilities come with:
- Up to 84 months (seven years) repayment period
- A 90-day repayment holiday
- Up to Sh1 million working capital support for qualifying agri-preneurs and SMEs
Although Kibet received a repayment period of up to five years, he has chosen to clear his loan much earlier.
“I have opted to accelerate my repayments and expect to finish the loan in less than three and a half years. But even if I wanted to utilize the full five years, the repayment period gives me enough breathing room.”
Equity Bank’s growing support for SMEs and agriculture
Equity’s focus on financing productive sectors continues to strengthen.
In 2025, the lender topped Kenya’s banking industry after disbursing Sh90.7 billion to micro, small and medium enterprises (MSMEs). This represented 28 per cent of the Sh326.5 billion advanced to the sector that year.
“We are not just a conventional lender to small businesses. We come in as a strategic partner who facilitates your success,” says Equity Group CEO Dr James Mwangi.
Dr Mwangi notes that Equity has committed to continue increasing its financing of the agriculture, manufacturing and MSMEs sectors.
By 2030, Equity plans to allocate:
- 30% of its loan book to agriculture
- 65% to micro, small and medium enterprises
- 15% to manufacturing
Asset financing is changing the future of Kenyan SMEs
Business development analyst MaryAnne Nyabuto says the bank’s strategy presents significant opportunities for entrepreneurs and farmers seeking sustainable growth.
“Most financial institutions have historically underserved the agricultural and MSME sectors,” she says.
“What we are now seeing is a shift from that trend, with Equity Group opening up affordable asset financing to farmers and small business owners who want to grow.”
For entrepreneurs like Elisha Kibet, access to asset finance has done more than purchase equipment—it has unlocked productivity, expanded income streams and accelerated business growth. His experience demonstrates that for many SMEs, the smartest investment is not waiting until enough capital has been saved, but leveraging asset financing to build productive capacity today.
Apply for Equity Bank Asset Financing HERE.
