Equity Bank Kenya has inked an asset financing deal with US based agrarian equipment manufacturer AGCO, that will see the lender provide up to 80 percent financing to customers interested in acquiring Massey Ferguson tractors and other agricultural equipment under the brand.
The loan deal, which will be made through Massey Ferguson’s local distributor FMD, will be payable within two years. FMD operates under the Panafrican Equipment Group (PEG). PEG is the principal distributor of Komatsu, Wirtgen Group and AGCO machinery brands in Kenya Rwanda, Burundi, Tanzania, Uganda, Nigeria, Sierra Leone and Dubai.
According to the bank, the asset financing deal will enable small scale farmers access quality and affordable equipment which will contribute to their farming activities and the nation’s overall food security.
“We share a common goal with AGCO which is to empower SMEs and especially those in the agribusiness value chain. This partnership will go a long way to enable more convenient access to finance thereby creating growth and job opportunities for more people,” Equity Bank Kenya Associate Director- Credit Sam Ndung’u said in a statement.
On his part, FMD General Manager Fergus Robley insisted that the partnership will enable farmers reap maximum profit from their farming endeavors.
“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,” Mr. Robley added.
In an effort to expand its footprint and customer reach, PEG last week unveiled a Ksh. 500 million complex on Mombasa Road that will serve as its East African headquarters. Speaking on the move, PEG Founder and Chairman Charles Field-Marsham expressed optimism that the new investment would pay off and meet the needs of farmers eyeing equipment in the East African region.
Before moving to the new complex, PEG had been leasing space on Bunyala Road Nairobi. The company has been operating in Kenya for the past 22 years having started out as a single source distributor of Komatsu construction equipment.