EAGC enters leasing deal for post harvest machinery
The East African Grain Council (EAGC) has entered into a leasing deal that will see its members benefit from access to post harvest machinery.
The move comes as the council seeks to minimize post harvest losses for smallholder farmers’ while also lowering production costs.
Speaking while signing the agreement, EAGC executive Director Gerald Masila said the leasing deal with RentCo East Africa offers a more flexible and customizable option to meet unique grain business needs than most funding options which have standardized repayment schedules.
“These lease companies now will be able to work with our members so that through lease arrangements this equipment can be availed to be our members. This way our members will not have to take up inappropriate loans,” Mr Masila said.
RentCo and EAGC will ensure that the leases are designed around members’ specific business needs, such as crop seasonality, cash flow and budget fluctuations.
Smallholder farmers have complained that the assets they own cannot be used as collateral.
RentCo chief operating officer Henry Emuye said financing the acquisition of equipment rather than using cash would offer significant benefits while mitigating business risks.
“We should be able to get the equipment on a platform where it’s accessible to everybody at a better cost and it saves people their money while improving the quality and quantity of their produce while ultimately reducing the cash strain that they have,” Mr Emuye said.
During the meeting, EAGC also signed another MOU with Centrerprise Holdings that will see them working together to facilitate access to capital as well as capacity building of EAGC members in finance and risk management.
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