By Robert Mutasi 
Farmers in the North Rift are set to access affordable agricultural machinery following a financing partnership between NCBA Bank and Car & General aimed at boosting productivity and expanding mechanised farming.
The programme will allow eligible farmers to finance up to 95 per cent of the cost of Kubota tractors and implements, with repayment periods of up to 60 months and a 60-day grace period before repayments begin.
The initiative was launched in Eldoret, Uasin Gishu County, on Thursday following the signing of a Memorandum of Understanding between the two companies.
NCBA Deputy Director and Head of Asset Finance and Insurance Premium Financing James Karinga said the programme would help farmers acquire machinery that could improve farm operations and generate additional income.
“More farmers are embracing commercial and mechanised farming, creating demand for solutions that improve productivity and profitability,” Karinga said.
He encouraged farmers to consider tractors as income-generating assets, explaining that owners could hire out their machinery to neighbouring farmers after completing work on their own farms.
Karinga said mechanisation would help farmers prepare land faster and take advantage of favourable weather conditions, particularly during planting seasons when delays can affect crop yields.
“When you embrace mechanisation, the overall cost of farming becomes easier, and you increase your savings,” he said.
Under the financing arrangement, borrowers can select repayment schedules that match their cash flows. Options include monthly, quarterly, half-yearly, annual and seasonal payments.
The seasonal option will allow farmers to align loan repayments with income earned after harvesting and selling their produce, reducing pressure during periods when farm earnings are limited.
Car & General Regional General Manager for Equipment Business Srinivas Devarakonda said the programme would improve access to machinery suitable for different stages of agricultural production.
He said the tractors and implements could support land preparation, planting, cultivation and other farm activities, allowing farmers to carry out several operations using the same equipment.
“Kubota tractors, engineered and manufactured in Japan, are designed to help farmers improve efficiency, increase productivity and maximise returns from their farms,” Devarakonda said.
He added that Car & General would provide technical expertise, genuine spare parts, warranty services and after-sales support to customers acquiring the equipment.
The company, which represents Kubota in Kenya and Uganda, is targeting sales of 400 tractors in Kenya next year.
The financing programme comes as farmers seek ways to reduce production costs, address labour challenges and improve efficiency in one of the country’s main food-producing regions.
The North Rift produces maize, wheat, sugarcane and other crops that contribute significantly to Kenya’s food supply. Timely land preparation and planting remain important to farmers who depend on rainfall to sustain production.
The partners said the programme seeks to address three key barriers to agricultural mechanisation: availability, accessibility and affordability.
By financing up to 95 per cent of the equipment cost, the arrangement will reduce the amount farmers need to raise before acquiring tractors. The 60-day repayment holiday will also give borrowers time to organise their finances before making their first payments.
Farmers who acquire the machinery could also establish tractor-hire businesses, serving other producers and earning additional revenue outside their own farming operations.
Participants at the launch welcomed the financing terms, saying the reduced upfront payment would make tractor ownership more attainable.
They said access to machinery would help them prepare larger areas of land, reduce dependence on manual labour and complete farm operations on time.
The programme is expected to create opportunities for individual farmers, cooperatives, transporters and other agricultural entrepreneurs seeking to expand their businesses through mechanisation.
Its long-term impact will depend on farmers’ ability to generate sufficient income from crop production and machinery-hire services to meet their repayment obligations.