Kenyan farmers are set to benefit from enhanced access to modern farming machinery following a Ksh 500 million financing agreement between Absa Bank Kenya, agri-tech firm Hello Tractor, and U.S. agricultural machinery manufacturer John Deere. This partnership, which was initially signed two years ago, is designed to ease the high cost of acquiring tractors, allowing farmers to lease them on a pay-as-you-use basis.
The agreement saw Hello Tractor utilize the initial funding to purchase 100 John Deere tractors and other farming implements. The program is now expanding with the goal of reaching more farmers, particularly in Kenya’s breadbasket regions, to help increase agricultural productivity and improve food security.
Hello Tractor’s innovative platform connects farmers with tractor owners, suppliers, and manufacturers, making it easier for them to access mechanized farming solutions. This partnership is particularly significant in Kenya, where mechanization has been a major challenge due to high costs. By enabling farmers to hire tractors rather than own them, the initiative is expected to boost the efficiency of farming operations, helping farmers cultivate larger areas of land.
Absa Bank Kenya’s Business Banking Director, Elizabeth Wasunna-Ochwa, emphasized that this financing deal has significantly impacted the livelihoods of farmers, increasing their contribution to the country’s food security. It is expected to create over 3,000 new jobs and mechanize more than 300,000 farms, which could lead to a significant increase in agricultural production, valued at approximately KES 21.4 billion ($150 million).
Hello Tractor CEO Jehiel Oliver noted that the partnership with Absa has enabled them to expand their operations, supporting farmers with not only machinery but also expert advice and training on best farming practices. The Kisumu County government also praised the initiative for helping farmers transition from subsistence to commercial farming, furthering the county’s food security goals.
This partnership is part of Absa Bank Kenya’s broader efforts to support the agribusiness sector, offering sustainable financing and advisory services to players across the agricultural value chain.
