In a landmark move set to transform Kenya’s agricultural landscape, Absa Bank Kenya, in collaboration with agri-tech firm Hello Tractor and global machinery manufacturer John Deere, has expanded a Sh500 million financing initiative aimed at enhancing access to mechanised farming for smallholder farmers across the country.
The initiative, launched during the unveiling of Hello Tractor’s new mechanisation hub in Ahero, Kisumu County, is expected to significantly boost productivity, create employment opportunities, and stimulate economic growth within Kenya’s vital agricultural sector.
Empowering Farmers Through Affordable Mechanisation
The tripartite partnership, which initially began two years ago, allows farmers to lease tractors through a Pay-As-You-Use model facilitated by Hello Tractor’s mobile platform.
The initial Sh500 million fund has already been utilized to co-finance the procurement of 100 John Deere tractors, now being deployed through the newly established Kisumu hub.
Speaking at the launch event, Absa Bank Kenya’s Business Banking Director, Elizabeth Wasunna-Ochwa, emphasised the bank’s commitment to accessible and inclusive agri-financing.
She stated that “the high cost of acquiring tractors has long been a barrier for many Kenyan farmers seeking to mechanize.”
“This partnership has not only made access more affordable but is also transforming lives, empowering farmers, uplifting communities, and fueling enterprise.” Wasunna-Ochwa emphasized.
Wasunna further explained that the expanded financing facility will enable farmers to cultivate larger tracts of land more efficiently, reduce production costs, and significantly contribute to national food security.
She said, “Through this initiative, we are enabling farmers to cultivate more land efficiently, reduce production costs, and contribute significantly to national food security.”
Broad Socio-Economic Impact
The mechanisation drive is expected to directly benefit over 300,000 smallholder farmers and create more than 3,000 new jobs nationwide.
According to projections shared by Absa Bank, the initiative could boost food output by nearly 1 million metric tons and inject an estimated Sh21.4 billion into the Kenyan economy.
In addition to the economic benefits, the program also aims to promote gender inclusion within the agricultural sector by making mechanised farming more accessible to women.
“This,” Wasunna added, “was expected to inject an additional Sh21.4 billion into the economy and, at the same time, promote gender inclusion by encouraging more women to adopt mechanised farming.”
Building a Sustainable Agricultural Ecosystem
Hello Tractor CEO Jehiel Oliver highlighted the initiative’s broader vision of building a holistic and sustainable agricultural ecosystem.
He explained that “our hubs serve as anchors for training, input distribution, and expert advice, helping farmers increase both productivity and income.”
He noted that Hello Tractor’s Kisumu hub alone currently operates 50 tractors across approximately 150,000 acres of farmland and serves as a model for expansion across Kenya and into other African markets.
“Our hubs serve as anchors for training, input distribution, and expert advice, helping farmers increase both productivity and income,” he said.
The program brings together a wide range of stakeholders—including tractor owners, input suppliers, and agronomists—creating an integrated network that supports farmers at every stage of production.
Government Support and Future Outlook
Kisumu County Executive Committee Member (CECM) for Agriculture, Kenneth Onyango, lauded the initiative for its potential to transition local farmers from subsistence to commercial agriculture.
He remarked that “this project is a game changer for our farmers. It not only modernises how we farm but also opens new opportunities for income generation and sustainable agricultural practices.”
A Vision for Africa’s Agricultural Future
At the heart of this initiative lies a shared vision of empowering African farmers and driving agricultural transformation through meaningful partnerships.
As Elizabeth Wasunna-Ochwa aptly put it, “At Absa, meaningful partnerships are at the core of what we do as we work towards empowering Africa’s tomorrow—one story at a time.”
With the mechanisation program now scaling nationwide, this collaboration between Absa Bank, Hello Tractor, and John Deere is poised to redefine the future of farming in Kenya—delivering not only economic gains but also long-term resilience for the country’s agriculture sector.
Share This Post