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Co-op Bank Signs A Ksh 500 Million Distribution Deal With Yara

BY Soko Directory Team · September 21, 2020 10:09 am

The Co-operative Bank of Kenya has signed a 500 million shilling financing deal with leading fertilizer Company Yara East Africa Limited.

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

The Distributor Finance Scheme is a five-year partnership that kicked off with 62 million shillings released to the Yara fertilizer distributors who have already applied for the scheme.

Yara distributors need to open an 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.

The scheme aims to enable distributors to increase their stock to meet the high demand for fertilizer during this short rain planting season and beyond.

“The Finance Scheme will help distributors of Yara fertilizers to maintain their desired stock levels for fulfilling the requirements of their customers, enabling them to thrive in the marketplace.  The distributors can borrow up to a maximum of Sh20 million to finance the purchase of their fertilizer stocks,” said Co-op Bank’s Ag Director Corporate and Institutional Banking, Jacquelyne Waithaka.

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

Yara is one of the major distributors of ferlizers across the country and farmers have been using their products for years.

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