Co-operative Bank of Kenya today has signed a Ksh.500 million financing with leading fertilizer Company Yara East Africa Limited. This is aimed at facilitating Yara fertilizer distributors across the country with a dedicated kitty to support them purchase and restock their outlets.
The Distributor Finance Scheme launched today is a five-year partnership that kicks off with Ksh.62 million being released immediately to the Yara fertilizer distributors who have already applied for the scheme.
In order to access the funds, Yara distributors need to open MSME Account with Co-op Bank. The Distributor Finance Scheme will enhance fertilizer access by farmers hence boosting the much-needed food production in the country.
Speaking at the signing ceremony, Yara Country Manager for Kenya, William Ng’eno, noted the importance of offering financial support to actors across the food production value-chain; “This financing program will enable farmers to access the various Yara fertilizer brands with ease. This in turn will boost fertilizer use to increase soil fertility and thus promote increase in food production across the country,” he said.
The Scheme will enable distributors to increase their stock to meet the high demand for fertilizer during this short rain planting season and beyond.
“It gives me great joy to announce that Yara will give a 3% 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,” added an elated Mr Ng’eno.
Co-op Bank’s Ag Director Corporate and Institutional Banking, Jacquelyne Waithaka, explained the importance of providing financial support to input distributors. “The Finance Scheme we have launched today will help distributors of Yara fertilizers to maintain their desired stock levels for fulfilling the requirements of their customers, enabling them thrive in the marketplace. The distributors can borrow upto a maximum of Kes.20 Million to finance purchase of their fertilizer stocks from Yara East Africa.”
The distributors will enjoy negotiated banking terms, with a disbursement fee of 2% being the only charge. “In addition, an overdraft with an expiry period of 180 days (6 months) and payment upon utilization of the overdraft will be due within 45 days,” Mrs. Waithaka added.