Absa Bank to boost mechanised farming in Kenya through Ksh.500M deal

Absa Bank Kenya PLC is increasing its lending under a Ksh.500 million financing agreement with agri-tech firm Hello Tractor and U.S. machinery manufacturer John Deere.

The partnership, launched two years ago, supports the purchase of tractors and farming equipment for Kenyan farmers on a Pay-As-You-Use model.

Hello Tractor fully utilized the initial Ksh.500 million facility to acquire 100 John Deere tractors and other inputs, prompting an extension to reach more farmers.

The agreement enables Hello Tractor to scale its app-based tractor-hailing service in Kenya’s key agricultural regions. The platform connects farmers with tractor owners and suppliers, improving access to mechanized farming tools.

Speaking at the launch of Hello Tractor’s new hub in Kisumu County, Absa Bank Kenya’s Business Banking Director, Elizabeth Wasunna-Ochwa, said the financing has helped lower barriers to mechanization for smallholder farmers.

“The high cost of tractors has long been a challenge for farmers. This partnership allows more farmers to access modern equipment affordably, helping boost food production and efficiency,” she said.

The initiative is expected to create 3,000 direct jobs, benefit over 300,000 farmers, and enable the production of up to 1 million metric tons of food worth Ksh.21.4 billion (approx. USD 150 million).

Hello Tractor CEO Jehiel Oliver said the partnership has allowed the company to extend its reach.

“Our mechanisation hubs bring together farmers, tractor owners, input suppliers, and agronomists to improve productivity. With Absa’s support, we now operate 50 tractors across 150,000 acres, and we’re expanding into other African countries,” said Oliver.

Kisumu County’s Agriculture CEC, Kenneth Onyango, praised the initiative for helping farmers shift from subsistence to commercial farming.

Agriculture accounts for around 50% of Kenya’s GDP (including related sectors), 60% of export earnings, and employs about 40% of the country’s workforce.

Absa Bank Kenya continues to support agribusiness through tailored financing and advisory services. Its approach spans the agricultural value chain — from input suppliers to agro-industry — and promotes inclusive participation, including by women farmers.