KCB Bank Kenya and Inchcape Kenya have entered into a strategic partnership aimed at expanding access to agricultural mechanisation by providing farmers with affordable financing for New Holland tractors and farm implements, a move expected to support productivity growth, improve food security and strengthen the country’s agricultural transformation agenda.
The agreement will enable farmers across Kenya to access financing of up to 95 percent of the cost of New Holland tractors and related agricultural equipment, significantly reducing the upfront capital requirements that have historically limited the adoption of modern farming technologies. Under the financing arrangement, farmers will benefit from repayment periods of up to 60 months, flexible monthly or seasonal repayment plans aligned with harvest cycles, and a 60-day repayment holiday for customers opting for monthly instalments.
The partnership reflects growing recognition that access to mechanisation remains one of the most significant constraints facing agricultural productivity in Kenya and many African countries. While agriculture contributes approximately one-third of Kenya’s Gross Domestic Product and employs more than 40 percent of the country’s workforce, a substantial proportion of farming activity continues to rely on manual labour and low levels of mechanisation, limiting yields, efficiency and profitability. According to the Food and Agriculture Organization (FAO), Africa has some of the lowest levels of agricultural mechanisation globally, with many smallholder farmers lacking access to tractors, irrigation systems and modern farm equipment. The result is lower productivity, higher labour costs and increased vulnerability to climate-related shocks, all of which undermine efforts to strengthen food systems and rural livelihoods.
Against this backdrop, financial institutions are increasingly being viewed as critical enablers of agricultural transformation. Access to affordable credit remains one of the biggest challenges facing farmers seeking to invest in productivity-enhancing technologies. High equipment costs, unpredictable agricultural incomes and limited collateral have often prevented farmers from securing financing for mechanisation investments. By tailoring repayment schedules to agricultural production cycles, KCB and Inchcape are seeking to address one of the sector’s longstanding structural challenges. Seasonal repayment options allow farmers to align loan obligations with cash flows generated during harvest periods, reducing financial pressure during planting and growing seasons when revenues are typically lower.
All financed tractors under the programme will be insured through KCB Bancassurance, providing farmers with protection against potential risks throughout the loan tenure. The financing package will also be offered at competitive interest rates, further improving affordability and expanding access to modern farming equipment among smallholder farmers, commercial growers and agribusiness operators.
Speaking on the partnership, Marion Gathoga-Mwangi, Managing Director of Inchcape Kenya, said the collaboration extends beyond financing by supporting broader efforts to accelerate mechanisation within the agricultural sector.
Her remarks reflect the growing importance of agricultural equipment in improving farm productivity. Studies across Africa have consistently shown that mechanisation can reduce production costs, increase cultivated acreage, improve efficiency and contribute to higher yields, particularly when combined with improved seeds, irrigation and climate-smart farming practices.
New Holland, one of the world’s leading agricultural machinery brands, has established a significant presence across African markets as governments and private sector players seek to modernise agriculture. The availability of financing solutions is increasingly viewed as essential for unlocking demand for such equipment, particularly among farmers who may lack the capital required for outright purchases. Peter Ng’eno, Director of Corporate Banking at KCB Bank, said the initiative aligns with the bank’s commitment to making agricultural financing more accessible and responsive to farmers’ needs. His comments come at a time when Kenya is intensifying efforts to improve agricultural productivity as part of broader national food security objectives. The sector remains a cornerstone of the country’s economy, contributing significantly to exports, employment and rural incomes. However, climate change, land fragmentation, rising input costs and limited mechanisation continue to constrain production.
The partnership also aligns with Kenya’s long-term agricultural transformation goals, including initiatives aimed at enhancing value chains, reducing post-harvest losses and increasing the commercialisation of farming. Mechanisation is increasingly viewed as a critical component of these efforts, particularly as the country seeks to meet the food demands of a growing population while improving the competitiveness of its agricultural sector. Across Africa, governments and development institutions are placing renewed emphasis on mechanisation as a pathway to economic development. The African Development Bank has repeatedly highlighted the need to modernise agriculture through greater investment in technology, infrastructure and access to finance. The institution’s “Feed Africa” strategy identifies mechanisation as one of the key pillars for increasing productivity and reducing food imports across the continent. The financing initiative also reflects broader trends within the banking sector, where financial institutions are increasingly developing specialised products tailored to agriculture. Traditional lending models have often struggled to accommodate the unique risks and cash flow patterns associated with farming. As a result, banks are introducing more flexible financing structures designed specifically for agricultural clients.
For KCB, one of East Africa’s largest financial institutions, the partnership strengthens its position within the agricultural finance market. The bank has continued to expand lending solutions across agricultural value chains, supporting farmers, processors, traders and agribusinesses through various financing products aimed at enhancing productivity and resilience. The broader economic significance of such initiatives extends beyond individual farmers. Increased mechanisation can contribute to higher agricultural output, stronger food security, increased rural incomes and improved supply chain efficiency. It can also support job creation in equipment servicing, maintenance, logistics and agricultural processing, creating multiplier effects across the economy.
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As Kenya seeks to build more resilient food systems amid growing climate and economic pressures, partnerships that combine financial innovation with access to modern technology are likely to play an increasingly important role. The collaboration between KCB Bank and Inchcape Kenya demonstrates how targeted financing solutions can help address longstanding barriers to agricultural investment while supporting national objectives related to food security, economic growth and sustainable rural development.
If successfully scaled, the initiative could serve as a model for similar partnerships across Africa, where improving access to mechanisation remains essential for unlocking the continent’s agricultural potential and strengthening the livelihoods of millions who depend on farming for their income and wellbeing.
