Farmers in Kenya now have a great opportunity to easily acquire farm machinery and equipment following the signing of a joint scheme between the Co-operative Bank and CFAO Kenya Ltd (formally Toyota Tsusho East Africa Ltd).
The new financing scheme will enable farmers and co-operative societies to finance the purchase of tractors, combine harvesters and other farm equipment they need in a more affordable fashion.
This scheme will offer farmers and co-operative societies up to 80% financing, thereby enabling them to acquire brand new machinery and equipment that they need without having to pay the huge costs upfront.
Second, the scheme will give farmers the option of seasonal loan payments, to match with the seasonal nature of some agricultural crop cycles.
Third, farmers will enjoy an extended loan repayment period of up to 60 months, perhaps the longest available in the market today.
Fourth, for customers who pay 50% deposit and repay the loan in 12 months, the loan will not attract any interest charges. As an added benefit, customers will receive 250 kilogrammes of Baraka Fertilizer with the purchase of every tractor under this scheme.
Co-op Bank Director of Co-operatives Banking, Mr. Vincent Marangu and CFAO Kenya Managing Director Mr. Toyoki Kuno, signed on behalf of the respective partners 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 assist customers to succeed in their projects and businesses.
"With this partnership, we will enable farmers and co-operative societies to more easily acquire brand new Agri-machinery and equipment from a trusted and leading brand," stated Mr. Marangu.
CFAO Kenya Managing Director, Mr. Toyoki Kuno explained that his company was 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 aftersales support. We feel honoured to partner with a bank like the Co-operative Bank that will give access to societies and farmers looking to re-tool, mechanize and upgrade farms through this partnership,” he stated.
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 customers and the public in general. It is in this regard that the bank has forged partnerships and alliances with select operators in the economy to enhance and enrich its product development to ensure a wholesome offering to customers.
Agriculture is a key economic driver in Kenya and a key pillar in the pursuit of sustainable food security. Improved mechanization is critical in this regard through changing the focus from subsistence to commercialization.
Technology-based agriculture is not only 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.
