Bank to finance purchase of agricultural equipment

Co-operative Bank of Kenya and CFAO Kenya (formerly Toyota Tsusho East Africa) have entered a financial partnership to enable clients purchase agricultural machinery.

The financing will be available for customers wishing to buy CASE IH tractors or combine harvesters together with implements such as ploughs and harrows.

CFAO Managing Director Toyoki Kuno and Co-op Bank director for Co-operatives Banking Vincent Marangu signed the deal at the motor firm’s headquarters in Nairobi.

“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,” said Mr Marangu.

Farmers and co-operative societies will get up to 80 per cent financing over a repayment period of up to 60 months with seasonal repayment options depending on the crop cycle, the firms said in a press release. 

“For customers who prefer to take shorter-term loans, the scheme will offer a loan repayable in 12 months, whereby a whole 50 per cent of the loan will not attract any interest charges,” they said.

CFAO will give customers 250 kilogrammes of fertiliser for every unit purchased. The partnership is set to run for one year.

“In agriculture, we are developing an imports company to supply not only blended fertiliser but also to take part in the very important programme of mechanisation,” said CFAO Kenya chairman Denis Awori. “We are very much focused on the development of Africa.

CFAO Kenya are the local authorised distributors of CASE IH tractors through their Agri Mechanisation Division headquartered in Nakuru.

Mr Kuno said his company is fully committed to supporting the Big Four Agenda especially food security by providing comprehensive farming solutions.

“We will provide continuous operator training and excellent after-sales 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, mechanise and upgrade farms through this partnership,” he said