KENYA – Equity Bank Kenya has signed a deal with US-based agricultural equipment manufacturer, AGCO. In the partnership, the lender will give its customers up to 80% financing which is payable within 48 months.
This financing will, in addition, enable the farmers to acquire the Massey Ferguson tractors and accompanying implements.
In addition, the bank will also give a comprehensive insurance cover at an annual premium of 2% of tractor value to customers who will qualify for the financing. This will be made through Equity Insurance Agency.
The loan credit will be made through machinery sole franchise holder, FMD East Africa. FMD is the local distributor of Massey Ferguson operating under Panafrican Equipment Group- Kenya.
The plan, according to Equity Bank Kenya associate director- credit Sam Ndung’u, is meant to empower small scale farmers and processors in achieving food security and growth respectively.
Equity Bank Kenya Associate Director- Credit, Sam Ndung’u, said through the sole franchise holder, FMD East Africa, financing will be provided to both businesses and individuals for Massey Ferguson tractors and complimenting implements.
“We share a common goal with AGCO which is to empower SMEs and especially those in the agribusiness value chain,” Ndung’u said.
“This partnership will go a long way to enable more convenient access to finance thereby creating growth and job opportunities for more people,”
Fergus Robley, the General Manager of FMD said, “This partnership will provide the missing link from wishing to own and enable the farmers to actualize their plans on making farming profitable.
“FMD provides the machinery and professional expertise in agri-mechanisation solutions. The partnership will facilitate the farmers to have quick turnaround time on loan applications as well as the comfort of having quality equipment on their farms. FMD is well known for being the pacesetter in aftersales support,”
This is the second partnership by the lender this year. In June, the bank signed a KShs5.7 billion (US$57m) partnership with European Investment Bank.
The bank signed the deal so as to enable Kenyan agricultural companies to access loans with maturities of up to seven years.
AGCO Corporation is an American agricultural equipment manufacturer. Its headquarters are in Duluth, Georgis. It owns the Massey Ferguson brand.
Equity Bank Kenya Limited is a financial services provider whose headquarters are in Nairobi, Kenya. The Central Bank of Kenya has licensed it as a commercial bank.