Marion Gathoga Mwangi, Managing Director of Inchcape Kenya and Grace Mbugua, Executive Head, Product Management at KCB Bank, inspect a New Holland tractor during the signing of a Memorandum of Understanding. Photo/courtesy.
Farmers can now access up to 95 percent financing to purchase New Holland tractors and farm implements following a new partnership between KCB Bank and Inchcape Kenya.
The financing arrangement is expected to accelerate agricultural mechanization, one of the key challenges limiting productivity among small and medium-scale farmers across the country.
Under the deal, farmers will receive financing with repayment periods of up to five years. Borrowers can choose between monthly repayments or seasonal payment plans aligned with harvest cycles, helping ease cash flow pressure during planting and growing seasons.
Farmers opting for monthly repayments will also benefit from a 60-day repayment holiday after receiving their tractors.
The financing package covers both tractors and agricultural implements, enabling farmers to invest in complete mechanization solutions rather than purchasing equipment in phases.
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According to industry experts, increased access to modern farm machinery can significantly improve efficiency, reduce production costs and increase yields, particularly as the sector faces rising labour costs and growing demand for food production.
Inchcape Kenya Managing Director Marion Gathoga-Mwangi said mechanization remains critical to improving agricultural productivity and profitability.
“When farmers have access to modern and reliable machinery, they can increase output, lower operating costs and improve overall farm performance,” she said.
KCB Bank Director of Corporate Banking Peter Ng’eno said the lender is seeking to remove financial barriers that have slowed the adoption of mechanized farming.
By aligning loan repayments with farming cycles, the bank hopes to make agricultural financing more practical and accessible for farmers across the country.
The partnership strengthens KCB’s position as one of the leading financiers of Kenya’s agricultural sector and comes at a time when policymakers and industry players are pushing for greater adoption of technology and mechanization to enhance food security and improve farm incomes.
Agriculture remains one of Kenya’s largest economic sectors, contributing significantly to employment, exports and rural livelihoods. However, limited access to modern machinery continues to affect productivity, particularly among smallholder farmers.
The KCB-Inchcape partnership is expected to support wider adoption of mechanized farming by lowering the upfront cost of acquiring tractors and other essential farm equipment.
