Agriculture remains the backbone of Kenya’s economy, contributing 25% of GDP directly and nearly 27% through its broader value chain. Yet for farmers to scale, mechanise, and stay resilient, access to tailored financing is critical.
For years, Stanbic Bank has helped and equipped the sector by offering a robust Vehicle and Asset Finance (VAF) and Solar PV Financing solutions designed explicitly for agribusiness.
Let us unpack some of them:
Mechanisation Made Possible: Tractors, Harvesters, Irrigation & Solar
Did you know that SBK’s agribusiness arm delivers comprehensive asset financing? The lender finances tractors, harvesters, centre pivots, and solar panels, addressing mechanisation and energy needs on the farm. These solutions are pivotal for farmers seeking to enhance productivity, improve processing efficiency, and increase climate responsiveness.
Full-Value Financing with Flexible Terms
Stanbic’s VAF facility offers:
- Up to 100% financing for new machinery and equipment
- Loan terms from 12 to 60 months
- Seasonal repayment plans aligned with farming cycles
Farmers can choose between hire purchase (immediate ownership) or financial lease (lease-to-own), ensuring cash flow flexibility and asset control.
Solar PV Finance: Cutting Energy Costs by 30–40%
Energy supply interruption and high electricity tariffs pose constant challenges for farms. SBK’s Solar PV Finance enables farmers to shift to sustainable energy via on-grid, hybrid, or off-grid systems, delivering roughly 30–40% savings on electricity
SBK further enhances uptake by partnering with vetted EPC (Engineering, Procurement, Construction) providers who conduct tailored energy audits, offer technical design and cost breakdowns, and install systems aligned with each farm’s energy profile
Fast, Farmer-Friendly Application Process
SBK has streamlined VAF processes to be quick and farmer-friendly. Once the application is complete, approval and disbursement can happen within a few working days, a critical advantage when farmers need timely access to machinery or energy systems.
Furthermore, SBK collaborates with trusted asset dealers and insurance providers, helping farmers source quality machinery and ensuring their assets are protected, reducing risk and paperwork complexities.
Typical requirement documentation includes a proforma invoice from a recognised supplier, six months of bank statements or proof of income, identification/business documents, and a completed application form.
Impact at a Glance
| Impact Area | Stanbic’s Contribution |
|---|---|
| Mechanization | Financing tractors, harvesters, and irrigation systems |
| Climate Resilience | Solar PV Finance for energy savings and grid independence |
| Financial Inclusion | Structured loans for smallholders and cooperatives |
| Cash Flow Management | Seasonal repayment plans aligned with harvest cycles |
| Agribusiness Growth | Preserved working capital for reinvestment and scaling |
Financing That Matches Farming Rhythms
Stanbic Bank Kenya aligns loan repayment schedules for asset finance with the unique cash flow cycles of farmers to ensure affordability and sustainability.
As a financing partner, Stanbic recognises that agricultural income is seasonal and often unpredictable. The bank structures repayments to coincide with harvest periods or peak sales windows, allowing farmers to repay when they have liquidity.
This flexible approach reduces financial strain, supports productivity, and empowers farmers to invest in critical assets like machinery and transport without disrupting their operations. By tailoring financial solutions to the rhythm of agribusiness, Stanbic fosters resilience and long-term growth in Kenya’s farmers.
There is no doubt that Stanbic Bank Kenya’s asset finance portfolio exemplifies how strategic financial instruments can transform the agribusiness landscape.
