Absa Bank Kenya PLC has announced an expansion of its lending limit under an ongoing Ksh500 million financing agreement with agri-tech firm Hello Tractor and US agricultural machinery manufacturer John Deere.
The agreement, signed two years ago, finances the purchase of tractors and implements to be used by Kenyan farmers on a Pay-As-You-Use basis.
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Under the initial phase, Hello Tractor fully utilised the Ksh 500 million to purchase 100 John Deere tractors and other inputs.
This success has now opened a window for extended lending with the aim of reaching and impacting more farmers.
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The financing agreement enables Hello Tractor to scale up its tractor-hailing service, especially in Kenya’s breadbasket regions.
Absa Mobile App Initiative to Help Farmers Hire Tractors
Through the Hello Tractor mobile app, farmers can hire tractors and implements from owners, suppliers, and manufacturers, enhancing access to mechanized farming solutions across the country.
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The initiative is expected to accelerate agricultural productivity by making modern equipment more accessible to small-holder farmers.
It is anticipated that the arrangement will result in 3,000 new direct jobs in the long run and mechanise more than 300,000 farmers in the country.
This is in turn expected to significantly boost their agricultural productivity and income by enabling them to produce nearly 1 million metric tons of food worth more than Ksh 21.4 billion (Equivalent to US $150 million).
Speaking during the launch of Hello Tractor’s new Hub in Kisumu County, Absa Bank Kenya PLC Business Banking Director, Elizabeth Wasunna-Ochwa, said the financing deal has substantially widened access to modern and efficient tractors by farmers.
According to her, this has enabled them to cultivate larger areas of land more efficiently, thereby raising their contribution to the country’s national food security.
Wasunna mentioned that the high cost of acquiring tractors has over the years been a significant challenge for farmers in Kenya who would like to mechanise their farming operations.
“As Absa, we believe that this partnership with John Deere, a world-renowned leader in agricultural machinery solutions, has not only lowered the barriers to accessing tractors, but has also boosted their enterprise by significantly impacting the livelihoods of farmers and the communities around them,” she said.
“Through this mechanized farming practices, we are reducing farming costs and creating efficiencies in food production.”
Also Read: Absa Kenya Flies 36 Business Club Members to Europe
Hello Tractor CEO Says Mechanisation Hubs Spur Growth
On his part, Hello Tractor CEO Jehiel Oliver noted that the partnership with Absa Bank Kenya has provided the financial support needed to extend the programme to more farmers for better efficiency.
He stated that their mechanisation hubs are creating and supporting an ecosystem that brings together farmers, tractor owners, input providers, and agronomists to help farmers maximise their productivity and income.
“Kisumu was our first hub, and we currently have 50 tractors serving 150,000 acres of land. Our partnership with Absa has enabled us to support farmers to run their farms efficiently by providing inputs, expert advice, and training centres for farmers for the best agricultural practices,” he said.
“This has triggered growth across Kenya which is now extending to other African countries,”
Speaking on behalf of Kisumu County Government, the CEC Ministry of Agriculture Kenneth Onyango applauded the efforts by Hello Tractor and Absa to help farmers transition from subsistence farming to commercial.
He stated that this is in line with the County’s mandate on food security, which is a primary focus for the County Government.
Also Read: Absa Kenya Launches Prestige Banking for Salaried Workers & Entrepreneurs
Absa Efforts to Boost Agribusiness
Agriculture is a key pillar of Kenya’s economy, contributing approximately 50% of the country’s Gross Domestic Product (including related sectors), 60% of export earnings, and employing about 40% of the workforce.
The banks said it remains committed to supporting stakeholders in the agribusiness sector through its information-led agribusiness proposition, which offers sustainable financing alongside non-lending interventions such as expert advisory services from its agribusiness specialists.
The bank has embraced a value chain approach, offering tailored solutions to input providers, primary producers, aggregators, and agro-industry players.
Furthermore, the financing agreement has enhanced the participation of women in mechanised farming, in line with Absa’s broader strategy for inclusive growth.
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