KENYA – Co-operative Bank, a commercial bank in Kenya has penned a joint scheme with CFAO Kenya Ltd formally known as Toyota Tsusho East Africa Ltd, to enable farmers and agricultural co-operative societies get up to 80 percent financing on Agri-Machinery.
The new Financing Scheme will enable farmers and co-operative societies to finance the purchase of tractors, combine harvesters and other farm equipment such as the popular Case IH Tractors they need in a more affordable fashion.
The scheme will also give farmers the option of seasonal loan payments, to match with the seasonal nature of some agricultural crop cycles.
In a statement, the two firms said that farmers will enjoy an extended loan repayment period of up to 60 months, perhaps the longest available in the market today.
For customers who pay 50 percent 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.
Speaking during the launch of the partnership, Co-op Bank director of Co-operatives Banking, Vincent 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,” Marangu said.
According to the General Manager of the Agricultural division of Case IH distributor in Kenya Ian Allen, co-op bank understands Agriculture and farmers need, therefore the scheme will be very strong.
“This is an innovative financing scheme that will be very strong. Co-operative bank understands agriculture and its contribution to our economy,” said the GM Case IH.
CFAO Kenya managing director, Toyoki Kuno said his company is fully committed to supporting the Big Four Agenda especially food security by providing comprehensive farming solutions which include but not limited to selling tractors.
“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,” stated Mr. Toyoki Kuno.
CFAO Kenya Ltd is an integrated business group that started in the automotive value chain sector but has expanded to other sectors including renewable energy, infrastructure development and Agri-mechanization.
They are the authorized distributors of CASE IH Tractors in Kenya through their Agri Mechanization division headquartered in Nakuru.
The tractors’ capacity ranges from 30 horsepower to 620 horsepower. CFAO range of products and services also include Baraka fertilizer.