Cooperative bank of Kenya have signed a Sh500 million financing deal with leading fertiliser Company Yara East Africa Limited. This is aimed at facilitating Yara fertiliser distributors across the country with a dedicated kitty to support them purchase and restock their outlets.
The Distributor Finance Scheme launched on Tuesday is a five-year partnership that kicked off with Sh62 million released to the Yara fertilizer distributors who have already applied for the scheme.Yara distributors need to open MSME Account with Co-op Bank to access the funds. The Distributor Finance Scheme will enhance fertilizer access by farmers hence boosting the much-needed food production in the country.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,” said William Ng’eno, Yara Country Manager for Kenya.
The scheme aims to enable distributors to increase their stock to meet the high demand for fertiliser during this short rain planting season and beyond.“The Finance Scheme 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 upvto a maximum of Sh20 million to finance purchase of their fertilizer stocks,” said Co-op Bank’s Ag Director Corporate and Institutional Banking, Jacquelyne Waithaka.“The distributors will enjoy negotiated banking terms, with a disbursement fee of 2 per cent being the only charge. “In addition, an overdraft with an expiry period of six months and payment upon utilisation of the overdraft will be due within 45 days,” Waithaka added.