Renewed Partnership between CFAO Kenya Limited and Equity Bank Kenya Empowers Farmers with Enhanced Financing Options
CFAO Kenya Limited, a subsidiary of the renowned Corporation for Africa and Overseas (CFAO SAS), is thrilled to announce the renewal of its strategic partnership with Equity Bank Kenya.
This renewed collaboration will revolutionize the agricultural landscape by providing farmers with improved financing options, increased benefits, and a range of comprehensive services.
Under this renewed partnership, farmers can now access an impressive 90% financing for a wide array of CASE IH tractor brands and models, as well as franchised implements distributed by CFAO Kenya Limited.
This remarkable financing rate represents a significant enhancement over the previous 80%, reflecting the commitment of both entities to empower and support the agricultural community.
The financing terms have been meticulously designed to cater to the diverse needs of farmers:
• The financing covers a maximum of 90% of the tractor cost, and at the customers’ request, the service kit cost may also be included in the total cost, subject to the Banks’ discretion and approval.
• The tenure of the loan facility has been set at a maximum of 60 months, offering flexibility to suit the financial preferences of farmers.
• Repayment options encompass monthly, seasonal, and unstructured schedules, tailored to align with the customers’ convenience as specified in the facility documents.
The partnership also extends to implements, where farmers can benefit from a margin of up to 90% finance. To qualify, the cost of the implement should not exceed 20% of the tractor cost, or as approved by the Bank.
In addition to the financing benefits, CFAO Kenya Limited is proud to offer its valued customers a compelling array of services:
• A free service kit comprising two air filters, one hydro filter, and one oil filter, ensuring top-notch maintenance and longevity of the equipment.
• A generous one-year warranty on CASE tractors and franchised implements, reflecting the company’s commitment to quality and reliability.
To safeguard the interests of farmers, a negotiated insurance premium rate of 1.5% has been established through Equity Bancassurance Intermediary Limited (EBIL). Furthermore, CFAO will provide a one-year free insurance cover through EBIL, reinforcing the comprehensive support available to farmers.
“We are excited about the renewed partnership with Equity Bank Kenya, which will elevate the agricultural industry in Kenya by offering farmers enhanced financing options and unparalleled benefits,” stated the chairman and country delegate of CFAO Group of Companies in Kenya Amb. Dennis Awori. “Our commitment to driving agricultural growth and prosperity remains steadfast, and we look forward to a successful partnership ahead.”
Speaking at the partnership signing event, Samuel Makome Equity Group Chief Commercial Officer said “The partnership strengthens the relationship between Equity Bank and CFAO. We are registering success, but this is part of a journey, we can do a lot more. So far 436 units were sold in the last one year, out of which 25% have been financed by Equity Bank, and by far the largest financier.”
Consistent with Equity Group’s strategic approach outlined in the Africa Recovery and Resilience Plan (ARRP), Samuel Makome further emphasized, “This partnership aligns with the ARRP across multiple pillars. These include Pillar 1, which focuses on Food and Agriculture, Pillar 4, dedicated to MSME and smallholder empowerment and business expansion for enhanced economic prosperity, and finally, Pillar 5, addressing Social and Environmental transformation.” Makome also highlighted that the partnership is set to introduce global standards to African markets, commencing with the EAC region. He added, “Equity Bank’s unwavering dedication lies in providing comprehensive financial services that foster social and economic empowerment for consumers, businesses, and communities alike.”
This renewed partnership underscores the shared vision of CFAO Kenya Limited and Equity Bank Kenya to uplift the agricultural sector and empower farmers with the resources they need to thrive. As the campaign duration extends for the next twelve months, both parties remain committed to exploring avenues for further collaboration, ensuring sustained growth and success for the farming community.
About CFAO Kenya Ltd.
CFAO Kenya Limited is a subsidiary of the CFAO Group based in France (A Toyota Tsusho Group Company). The company is the leader in farming technology, providing Agri-mechanization solutions to farmers as the official distributor of Case IH Tractors in Kenya. In addition, the company is a market leader in renewable energy and infrastructure projects, as well as investment and scale-up of the various start-ups in mobility sector in the country.
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