Co-op taps Yara in Sh500m agri-distributor financing scheme
Co-operative Bank of Kenya has formalised a Sh500 million financing deal with agro-supplies firm Yara East Africa to boost services of of the firm’s fertiliser distributors countrywide.
In a five-year agro-distributor partnership scheme launched yesterday, the lender will release Sh62 million to Yara fertilizer distributors who had already applied for the scheme.
According to Yara Country Manager for Kenya William Ng’eno, the scheme will enable farmers access various Yara fertilizer brands with ease in a move expected to boost soil fertility and food production across the country.
He said the deal comes in handy during the ongoing short rain planting season and beyond as part of efforts top boost agribusiness in the country.
“It gives me great joy to announce that Yara will give a 3 per cent discount to distributors making purchases under this Co-operative Bank Distributor Finance scheme to ensure our fertilizers are readily available and accessible to the farmers for planting and top-dressing purposes,” said Ng’eno.
The distributors must however open MSME account with Co-op Bank to benefit from the new Agro-Distributor Finance Scheme.
According to Co-op Bank’s Acting Director in charge of Corporate and Institutional Banking Jacquelyne Waithaka, the deal comes with negotiated banking terms for distributors, with a disbursement fee of 2 per cent being the only charge.
“The distributors can borrow up to a maximum of Sh20 million to finance purchase of their fertilizer stocks from Yara East Africa,” said Waithaka.
“In addition, an overdraft with an expiry period of 6 months and payment upon utilization of the overdraft will be due within 45 days,” she added.