Absa Bank Kenya PLC is increasing its financial support for farmers through a partnership with agri-tech company Hello Tractor and U.S. agricultural machinery maker John Deere. This move builds on a KES 500 million (half a billion shillings) agreement signed two years ago.
What Is the Deal About?
The partnership helps Kenyan farmers get access to tractors and farming equipment without needing to buy them outright. Instead, farmers can pay only when they use the machines — a model called “Pay-As-You-Use”. This system helps small-scale farmers who cannot afford to buy their own tractors.
In the first phase of the agreement, Hello Tractor used all the KES 500 million to buy 100 John Deere tractors and other equipment. Because the programme has been successful, Absa is now giving more money to expand the support.
How Does Hello Tractor Work?
Hello Tractor is a mobile app that acts like a “tractor-hailing” service — similar to how taxi apps connect passengers with drivers. It links farmers who want to hire tractors with people who own them, along with suppliers and manufacturers of farming tools.
This system makes it easier and cheaper for farmers in Kenya’s key farming areas (known as “breadbasket regions”) to access modern machines and improve their farming methods.
Why Is This Important?
Modern farming machines help farmers grow more food using less effort and time. According to Elizabeth Wasunna-Ochwa, Absa Bank Kenya’s Business Banking Director, this deal has helped farmers grow more crops and improve food security in the country.
She said,
“The high cost of tractors has been a major problem for farmers who want to use machines. This partnership has made tractors more affordable and improved the livelihoods of farmers and their communities.”
With this expansion, the programme is expected to:
- Create about 3,000 direct jobs
- Support over 300,000 farmers
- Help farmers grow around 1 million metric tons of food
- Add an estimated value of KES 21.4 billion (about USD 150 million) to the economy
More Than Just Tractors
Hello Tractor’s CEO, Jehiel Oliver, explained that their work goes beyond simply renting out tractors. Their “mechanisation hubs” bring together farmers, tractor owners, farming input providers (like seed and fertiliser sellers), and farming experts (called agronomists). These hubs help farmers increase their output and income.
The first hub was set up in Kisumu County, where 50 tractors now serve 150,000 acres of land. Farmers also receive expert advice and training on best farming practices.
Mr Oliver added,
“Thanks to the partnership with Absa, we have been able to support farmers across Kenya and now even in other African countries.”
Support From Local Government
Kisumu County’s Agriculture CEC, Kenneth Onyango, praised the initiative for helping farmers shift from small-scale or subsistence farming — growing only enough to feed their families — to commercial farming, where they can produce enough to sell and earn income.
He said,
“This supports our food security goals, which are a top priority for the County Government.”
Agriculture’s Big Role in Kenya
Agriculture plays a vital role in Kenya’s economy:
- It contributes 50% of Kenya’s Gross Domestic Product (GDP) when including related industries.
- It earns 60% of the country’s export income.
- It employs about 40% of the workforce.
Absa Bank says it will continue to support agribusinesses with both funding and expert advice. The bank’s value chain approach supports everyone involved in farming — from those providing seeds and tools to those processing and selling food. The project is also helping increase the involvement of women in mechanised farming, in line with Absa’s strategy for inclusive growth.