Co-operative Bank of Kenya on Tuesday said it has signed a five-year deal with agro-supplies firm Yara East Africa to boost services of its fertilizer distributors countrywide.
The Ksh 500 million five-year scheme will enable Kenyan farmers to access to various Yara fertilizer brands aimed at boosting soil fertility and food production across the country.
“It gives me great joy to announce that Yara will give a 3 percent discount to distributors making purchases under this Co-operative Bank Distributor Finance scheme to ensure our fertilizers are readily available and accessible to the farmers for planting and top-dressing purposes,” said Yara Country Manager for Kenya William Ng’eno.
Co-op Bank’s Acting Director in charge of Corporate and Institutional Banking Jacquelyne Waithaka, the pact comes with negotiated banking terms for distributors, with a disbursement fee of 2 percent being the only charge.
“The distributors can borrow up to a maximum of KSh20 million to finance the purchase of their fertilizer stocks from Yara East Africa,” said Waithaka.
“In addition, an overdraft with an expiry period of 6 months and payment upon utilization of the overdraft will be due within 45 days,” she added.