Equity and Car & General Partner to Make Farm Mechanization More Accessible
Equity Bank and Car & General Trading Kenya have partnered to help more farmers access agricultural machinery and improve productivity.
The partnership will allow farmers to finance up to 90 per cent of the cost of Kubota tractors through Equity Bank. Farmers will provide a 10 per cent deposit, while repayment can be structured around their farming cycles.
For farmers, the initiative could make it easier to acquire machinery for tasks such as land preparation, planting, harvesting and transporting produce.
Making Mechanization More Accessible
Kagiso Moloi, Commercial Director at Equity Bank Kenya, said the partnership is focused on supporting the wider agricultural ecosystem.
“Our intention is not to measure the units, but necessarily to measure how we transform the lives of the people around us. We don’t only look at the tractors alone. We look at how we can unlock that whole ecosystem and ensure that it’s not painful for the farmer,” Moloi said.
George Rubiri, General Manager of Car & General Trading Kenya, said the partnership aims to address the country’s low level of agricultural mechanization.
“Agri-mechanization in Kenya is only 30 per cent and we come in to bridge this gap. Equity Bank provides flexible financing of up to 90 per cent, which makes it exciting and easy for the farmers,” he said.
Farmers interested in the tractors can visit Equity Bank or Car & General branches to explore the financing option.
Farmers See the Difference
For Narok farmer and agricultural teacher Cecilia Moshiri, owning a Kubota tractor has already changed how she works on her farm.
Moshiri bought her tractor two years ago. She has since used it to cultivate previously untouched land, transport farm inputs and produce, and provide ploughing services to neighbouring farmers.
“I had virgin land which was not broken before. Because of its robust energy, it has worked through a very rough, rugged land and nowadays the land is very fine,” she said.
Moshiri also earns additional income by offering ploughing services to other farmers.
“There was not much harvest in Narok this year, but I think I was almost one of the farmers who produced most. With the good experience that I’ve gotten from Kubota, I’m looking forward to continuing to partner with Equity so that I can have another machine in future.”
Financing Built Around Farming Cycles
Beatrice Nyambura, Head of Asset Finance at Equity Bank Kenya, said the financing package recognizes the seasonal nature of agriculture.
“The farmer will only need to raise a deposit of 10 per cent. We acknowledge the seasonality of farming, meaning that the farmer can pay depending on their crop; either monthly or we can also do it in a season,” she said.
The package includes first-year insurance and a two-year extended warranty. Subsequent insurance premiums have also been negotiated at up to 1.5 per cent.
Supporting More Efficient Farming
Moses ole Koila, a farmer and seed merchant from Olokurto in Narok County, said mechanization can improve efficiency in labour-intensive farming.
“There’s nothing that beats a farmer with all farm implements. It gives efficiency in terms of work and for us who are doing seed production and especially potatoes,” he said.
According to Koila, machinery can support farmers throughout the production process, from planting and harvesting to transporting produce for grading.
Agriculture as a Growth Opportunity
George Macharia, Head of Food and Agriculture Business at Equity Bank Kenya, said the partnership forms part of the bank’s wider focus on agricultural financing.
The bank aims to have agriculture account for 30 per cent of its loan book by 2030. Mechanization is among the interventions expected to improve farm efficiency and support climate-smart agriculture.
“The goal is that by 2030, agriculture will be contributing 30 per cent of the entire Equity Bank’s loan book. The technology that we are bringing for Kubota Tractor is coming with the implements that are supporting the farmers and the agricultural community to implement what we are calling climate-smart agriculture,” Macharia said.
He added that agricultural mechanization could also create opportunities for young people trained in agriculture to earn an income by providing machinery services to farmers.
