Kenyan farmers and agricultural entrepreneurs could gain improved access to farm mechanisation following a new partnership between NCBA Bank Kenya and Car & General aimed at making Kubota tractors and agricultural equipment more affordable through flexible financing arrangements.
The two companies have signed a Memorandum of Understanding (MoU) that provides for financing of up to 95% of equipment costs, repayment periods extending to 60 months and a 60-day repayment holiday.
The initiative is designed to help farmers, entrepreneurs and agricultural businesses acquire productive machinery without having to meet the full purchase cost upfront.
Reducing the Financial Barrier to Tractor Ownership
Access to affordable agricultural machinery remains an important consideration for farmers seeking to mechanise their operations.
Tractors and compatible implements can require substantial capital investment, particularly for small and medium-sized farming enterprises.
Under the announced partnership, eligible buyers may be able to finance a significant portion of the equipment’s purchase price, potentially reducing the initial capital required.
For example, if a tractor were priced at KSh 3 million, financing covering 95% of the purchase price would amount to KSh 2.85 million, leaving a buyer contribution of KSh 150,000 before any additional charges.
This is an illustrative calculation rather than an actual Kubota tractor quotation or confirmed loan offer.
Kubota Tractor Financing in Kenya
Up to 95% Financing
Eligible customers can finance up to 95% of the cost of agricultural equipment.
Repayment Period of Up to 60 Months
Financing terms can extend to five years.
60-Day Repayment Holiday
The partnership includes a 60-day repayment holiday.
Financing partners: NCBA Bank Kenya and Car & General. Financing is subject to eligibility and applicable terms. Contact the partners to confirm current application requirements.
Financing Terms Designed for Agricultural Businesses
According to Car & General, the arrangement will combine its agricultural machinery expertise with NCBA’s financing capabilities.
The announced financing features include:
- Financing of up to 95% of eligible equipment costs.
- Repayment periods of up to five years.
- A 60-day repayment holiday.
- Access to Kubota tractors and agricultural equipment covered by the arrangement.
The companies have not specified in the supplied announcement the interest rates, application requirements or individual tractor models covered by the financing programme.
Prospective buyers will therefore need to establish the applicable conditions directly with the partners.
Opportunities for Agricultural Machinery Entrepreneurs
Beyond helping farmers acquire tractors for their own operations, the partnership could also create opportunities for entrepreneurs interested in agricultural machinery services.
Tractor owners can potentially generate revenue by providing ploughing, land preparation and other mechanisation services to farmers who do not own equipment.
Such arrangements may be particularly relevant in agricultural regions where demand for mechanisation rises during land preparation and planting seasons.
However, the commercial viability of a machinery-hire business depends on equipment utilisation, operating expenses, maintenance costs, customer demand and loan repayment obligations.
Expanding Access to Kubota Agricultural Equipment
Kubota is a Japanese agricultural machinery manufacturer whose equipment is used in a range of farming applications.
Through its partnership with NCBA, Car & General aims to expand access to Kubota tractors and agricultural equipment among Kenyan farmers and businesses.
In its official announcement, Car & General said the partnership forms part of its commitment to creating opportunities through strategic collaborations as the company marks 90 years of operations.
The announcement also emphasised the role of agricultural mechanisation in improving productivity and supporting sustainable business growth.
What Prospective Tractor Buyers Should Know
Although the financing arrangement offers the possibility of funding up to 95% of eligible equipment costs, farmers should establish the full borrowing conditions before making purchasing decisions.
Important considerations include interest rates, deposit requirements, insurance, financing charges, repayment schedules and the equipment models eligible for funding.
The companies have not yet detailed these conditions in the supplied announcement.
For farmers and agricultural entrepreneurs, the partnership represents another potential financing route for acquiring machinery that could support farm operations or generate income through mechanisation services.
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Martin is a writer at Agrimachinery Africa specializing in agricultural machinery, mechanization trends, and farm technology across Africa. His work focuses on tractors, harvesting equipment, irrigation systems, and emerging innovations helping farmers improve productivity and efficiency. Through in-depth industry coverage, he highlights technologies shaping the future of modern agriculture.