Equity Bank Kenya and AGCO, a U.S. Company which owns the Massey Ferguson brand, have on 28th October signed a partnership agreement that will see their customers get up to 80% financing payable within 48 months on the Massey Ferguson tractors and accompanying implements.
Speaking at the launch ceremony, Equity Bank Kenya Associate Director- Credit, Sam Ndung’u, indicated that the Bank is partnering with AGCO, one of the biggest agricultural machinery companies globally. 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 from farmers, to processors, with the aim of assisting in the achievement of food security on the continent. This partnership will go a long way to enable more convenient access to finance thereby creating growth and job opportunities for more people,” said Mr. Ndung’u.
On his part, 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”.
Equity Bank is giving customers who qualify for the financing to purchase the tractors under the partnership terms, a specially negotiated comprehensive insurance cover at an annual premium of 2% of tractor value, through Equity Insurance Agency as part of the deal.
Massey Ferguson tractors are one of the most recognized tractors throughout the world. These tractors have proven to give unrivaled longevity throughout Africa and are preferred by those involved in crop farming, livestock keeping and horticulture.
The Kenya National Government’s Big 4 Agenda includes Manufacturing and Food Security (Agribusiness). Equity Bank has aligned its strategy with this national agenda, to focus on growing the Agribusiness portfolio through servicing all segments from retail, to SME, to large enterprises and corporate banking customers.
The partnership comes on the backdrop of a recent partnership between Equity Bank Kenya and European Investment Bank and supported by the European Union, for an agriculture sector financing agreement. The partnership will see economic opportunities for thousands of small holder farmers across Kenya transformed through a EUR 50 million (KES5.7 billion) fund.