•The facility will be payable within two years.
•Customers who qualify for the financing will receive a negotiated comprehensive insurance cover under the bank at an annual premium of two per cent of tractor value as part of the deal.
Equity Bank Kenya has signed a deal with US-based agricultural equipment manufacturer, AGCO, to offer customers 80 per cent of financing on the Massey Ferguson tractors and accompanying implements.
The loan credit will be made through machinery sole franchise holder, FMD East Africa and payable within two years.
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.
“We share a common goal with AGCO which is to empower SMEs and especially those in the agribusiness value chain. This partnership will go a long way to enable more convenient access to finance thereby creating growth and job opportunities for more people,” Ndung'u said.
The partnership with the global company has been highly anticipated by the Panafrican Equipment Kenya to business boost.
During the official opening of its Sh500 million offices in Nairobi last week, Panafrican Equipment Kenya general manager Greg Jackson, the equipment had seen a decline over the last four years over the cut on government spending, cycles of state's payment to contractors and interest rate cap.
This forced the firm to run on Panafrican Finance, the company's funded structure, however serving large-scale contractor clientele due to high credit risks on other segments.
The partnership will provide the missing link from wishing to own and enable the farmers to actualize their plans on making farming profitable, FMD general manager Fergus Robley said.
“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,” Robley added.
Customers who qualify for the financing will receive a negotiated comprehensive insurance cover under the bank at an annual premium of two per cent of tractor value as part of the deal.