Co-Op Bank Signs a Sh.500m Financial Deal with Fertilizer Distributor, Yara

Co-operative Bank of Kenya has signed a Sh500 million financing deal with leading fertilizer Company, Yara East Africa Limited.

The deal is aimed at facilitating Yara fertilizer distributors across the country with a dedicated kitty to support the purchase and restock their outlets.

The five – year Agro-Distributor Finance partnership launched on Tuesday will see Sh62 million being released immediately 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 an increase in food production across the country,” said William Ng’eno, Yara Country Manager for Kenya.

Ng’eno added that Yara will give a three per cent discount to distributors making purchases under this Co-operative Bank Distributor Finance scheme to ensure fertilizers are readily available and accessible to the farmers for planting and top-dressing purposes

Co-op Bank’s acting director Corporate and Institutional Banking, Jacquelyne Waithaka, said it was important to provide financial support to input distributors if the country is keen at realizing its agenda on food production.

Agriculture is the cornerstone of Kenya’s economy, with the sector accounting for 33 per cent of the country’s Gross Domestic Product (GDP).

“The Agro-Distributor Finance Scheme will help distributors and agro-dealers of Yara fertilizers to thrive in the dynamic business environment. The distributors can borrow up to a maximum of Sh20 Million to finance the purchase of their fertilizer stocks from Yara East Africa,’’ Waithaka said.

“The distributors will enjoy negotiated banking terms, with a disbursement fee of 2 per cent being the only charge. “Besides, an overdraft with an expiry period of six months and payment upon utilisation of the overdraft will be due within 45 days,” Waithaka added.

The distributors will enjoy negotiated banking terms, with a disbursement fee of two per cent being the only charge.