Bank of Africa (BOA) Kenya and Ganatra Plant and Equipment have signed a Memorandum of Understanding that will enable businesses to access financing of up to 90 per cent of the cost of new JCB construction and agricultural equipment over a repayment period of up to five years.
The agreement, signed in Nairobi, seeks to expand access to asset financing for contractors and businesses that require heavy machinery but face high upfront acquisition costs.
Ganatra Plant and Equipment, the authorised JCB dealer in Kenya and Uganda, said the partnership marks a shift towards increasing the availability of structured equipment financing for customers.
The agreement comes as demand for construction equipment is expected to grow alongside continued investment in roads, housing, energy and other infrastructure projects.
Despite increasing demand, the cost of purchasing heavy machinery remains a significant barrier for many small and medium-sized contractors, limiting their ability to participate in large infrastructure projects.
Under the financing arrangement, eligible customers will provide a 10 per cent deposit while BOA Kenya finances the remaining 90 per cent of the purchase price. The loan will be repayable over a period of up to 60 months.
Speaking during the signing ceremony, JCB Ganatra Managing Director Altaf Ganatra said the financing model is intended to improve access to equipment for businesses undertaking infrastructure projects.
“During this infrastructure period, JCB Ganatra will put equipment in the market while offering longer repayment periods to help businesses fulfil their commitments,” he said.
BOA Kenya Head of Assets Bernice Murigi said the partnership builds on the bank’s experience in asset financing for the agriculture and construction sectors.
“The strong collaboration in finance, agricultural and construction sectors will enable seamless services,” she said, adding that the financing terms were designed to lower entry barriers for businesses seeking to acquire machinery.
Ganatra Plant and Equipment General Manager Suhhel Yakub said the partnership combines equipment supply with financing to support businesses investing in construction and agricultural machinery.
BOA Kenya’s Philip Ngunyu said the bank was ready to begin processing applications under the new financing arrangement.
“The bank deals with vehicles and machinery and is ready for customers to provide services that enable the long-term acquisition of infrastructural products,” he said.
For BOA Kenya, the agreement expands its asset finance portfolio within the construction and agricultural sectors, while Ganatra will continue to provide equipment distribution and after-sales support.
The financing programme is expected to take effect immediately, with both organisations indicating that eligible businesses can begin applying for financing under the agreed framework.
