Absa Bank Kenya PLC has expanded its lending under a KES 500 million financing agreement with agri-tech firm Hello Tractor and U.S. machinery maker John Deere. The deal aims to help more Kenyan farmers access tractors and implements on a Pay-As-You-Use basis.
The agreement, launched two years ago, has already financed the purchase of 100 John Deere tractors. With demand rising, Absa is increasing the lending limit to support more farmers.
Farmers can now hire tractors via Hello Tractor, an app that connects them with tractor owners, suppliers, and manufacturers. The platform targets Kenya’s key food-producing regions, enhancing access to mechanised farming solutions.
Speaking at the launch of Hello Tractor’s new hub in Kisumu County, Absa Bank’s Business Banking Director, Elizabeth Wasunna-Ochwa, said the financing has improved efficiency in farming.
“The high cost of acquiring tractors has been a major barrier for farmers. This partnership lowers that barrier and supports enterprise growth,” she said. “We are helping farmers cultivate more land, reduce costs, and boost food production.”
The project is expected to create 3,000 direct jobs and support over 300,000 farmers. These farmers could produce up to one million metric tons of food, valued at over KES 21.4 billion (USD 150 million).
Hello Tractor CEO Jehiel Oliver said the Absa partnership has been crucial for growth.
“Our hubs are building ecosystems that connect farmers with inputs, advice, and training. Kisumu was our first hub. We now have 50 tractors working 150,000 acres,” he said.
Kisumu County CEC for Agriculture, Kenneth Onyango, praised the initiative.
“This move helps farmers shift from subsistence to commercial farming. It supports our food security goals,” he said.
Agriculture contributes 50 percent to Kenya’s GDP, 60 percent of exports, and employs 40 percent of the workforce.
Absa Bank says it will continue supporting agribusiness through financing and advisory services. The bank’s approach covers the entire value chain, from input providers to agro-processors. The initiative also promotes women’s participation in mechanised farming.