Farm Machinery Loans in Kenya: Farmers in Kenya now have a more affordable opportunity to access farm machinery and equipment following the signing of a deal between Co-operative Bank and CFAO Kenya Ltd (formally Toyota Tsusho East Africa Ltd). With this partnership, farmers will access easier finance to purchase tractors, combine harvesters and accompanying implements.
In the scheme, which targets co-operative societies and farmers, the Bank will provide up to 80% financing with an option of seasonal payments and or a repayment period of up to 60 months. Beneficiaries will receive 250 kilogrammes of Baraka Fertilizer with the purchase of every tractor under this scheme. In order to accommodate customers for both short-term and long term asset financing, the scheme also offers a short-term option of up to 50% interest free financing payable within 12 months.
Co-op Bank Director, Co-operatives Division, Mr. Vincent Marangu and CFAO Kenya Managing Director Mr. Toyoki Kuno, signed on behalf of their respective companies at a ceremony held in CFAO Kenya offices in Nairobi.
Speaking during the launch of the partnership, Mr. Marangu said Co-operative Bank is always looking for ways to add value to its customers as well as help develop their businesses further by providing flexible financing solutions. “With this partnership, we will enable farmers and co-operative societies to purchase brand new Agri-machinery and equipment from a trusted and leading brand,” said Mr. Marangu.
CFAO Kenya Managing Director, Mr. Toyoki Kuno said his company is fully committed to supporting the Big Four Agenda especially food security by providing comprehensive farming solutions which include not just selling tractors, but also providing farming implements and Baraka fertilizer to compliment the crops. “We will provide continuous operator training and excellent after sales support. We feel honoured to partner with a bank like Co-operative that will give access to societies and farmers looking to mechanize and upgrade their farms through this partnership,” he said.
CFAO Kenya Ltd is an integrated business group that started in the automotive value chain sector but has evolved beyond its established roots and expanded its portfolio to become a formidable force in various sectors in the region, which include renewable energy, infrastructure development and Agri-mechanization.
CFAO Kenya are the authorized distributors of CASE IH Tractors in Kenya through their Agri Mechanization division headquartered in Nakuru. The tractors’ capacity range from 30 horsepower to 620 horsepower. CFAO range of products and services also include Baraka fertilizer and customer support services backed by a professional team of experts.
Co-operative Bank firmly believes that forming partnerships that benefit their customers and the public in general is an integral part of their unmatched customer service undertaking. Before providing a financial solution, Co-op Bank ensures that they weigh the business need and the prevailing market situation versus the opportunity. This ensures that the partnership deal meets the customer need and keeps up with the changing market enabling the customer to focus on their core business.
Agriculture is one of the key economic drivers in Kenya and the main lead in achieving a key pillar of Vision 2030, which is to be self-reliant in producing enough food to feed the increasing population. Improved mechanization is critical to achieving this vision through changing the focus from sustenance to commercialization.
Technology based agriculture is not the future but a necessity for our economy today as it increases agricultural productivity, raises farmers’ incomes, guarantees balanced nutrition for the general population and enhances economic welfare. Corporates can support this vision by creating such partnerships that enable more Kenyans to be self-reliant. Farm Machinery Loans in Kenya.