Absa Bank Kenya is expanding its lending under a KES500 million financing agreement with agri-tech firm Hello Tractor and U.S.-based agricultural machinery maker John Deere, signed two years ago. 

The new partnership will fund the acquisition of tractors and implements for Kenyan farmers on a Pay-As-You-Use basis, enhancing access to mechanized farming solutions.

Having fully used the initial KES500 million to purchase 100 John Deere tractors and related inputs, Hello Tractor has now entered an extended lending phase, aiming to reach even more farmers and amplify its impact.

Through this agreement, Hello Tractor is scaling up its tractor-hailing service—an innovative app connecting farmers with tractor owners, suppliers, and manufacturers—particularly in Kenya’s key agricultural regions. 

This initiative is set to boost productivity, reduce labour constraints, and strengthen food security by making mechanized farming more accessible.

Speaking at the launch of Hello Tractor’s new hub in Kisumu County, Elizabeth Wasunna-Ochwa, Absa Bank Kenya PLC’s Business Banking Director stated that the financing deal has substantially widened access to modern and efficient tractors.

“The high cost of acquiring tractors has over the years been a significant challenge for farmers in Kenya who would like to mechanise their farming operations. 

As Absa, we believe that this partnership with John Deere has not only lowered the barriers to accessing tractors, but has also boosted their enterprise by significantly impacting the livelihoods of farmers and the communities around them. Through this mechanized farming practices, we are reducing farming costs and creating efficiencies in food production,” said Ms. Wasunna.

It is anticipated that the arrangement will result in 3,000 new direct jobs in the long run and mechanise more than 300,000 farmers in the country. 

This is in turn expected to significantly boost their agricultural productivity and income by enabling them to produce nearly one million metric tonnes of food worth more than KES21.4 billion (Equivalent to $150 million).

Hello Tractor CEO Jehiel Oliver noted that the partnership with Absa Bank Kenya has provided the financial support needed to extend the programme to more farmers for better efficiency.

Maximize productivity

“Our mechanisation hubs are building and anchoring an ecosystem where we bring together farmers, tractor owners, input providers and agronomists to ensure farmers maximize their productivity and income. 

"Kisumu was our first hub and we currently have 50 tractors serving 150,000 acres of land. Our partnership with Absa has enabled us to support farmers to run their farms efficiently by providing inputs, expert advice, training centres for farmers for best agricultural practices. This has triggered growth across Kenya which is now extending to other African countries,” he said.

Speaking on behalf of Kisumu County Government CEC Ministry of Agriculture Kenneth Onyango applauded the efforts by Hello Tractor and Absa to help farmers transition from subsistence farming to commercial.

Agriculture is a major contributor to Kenya’s economy, accounting for roughly 25 percent of the country’s Gross Domestic Product, 60 percent of export revenues, and 40 percent of the workforce.