Motor vehicle distributor, Simba Corp, is targeting Kenyan smallholder farmers in its new tractor partnership with Mahindra.
In the deal, Mahindra Tractors – one of the world’s largest tractor makers by volume – plans to strengthen its presence in Kenya where rival brands include New Holland, John Deere and Massey Ferguson.
The partnership aims to tap the growing mechanisation in major food baskets, including the Rift Valley.
During the launch officiated by State Department of Crop Development and Agricultural Research Principal Secretary Paul Rono, Simba Corp Chief Executive Dinesh Kotecha called on the government to zero-rate the 16 per cent Value Added Tax (VAT) on farm implements.
“Our commitment to empower farmers is aligned with government initiatives aimed at supporting small-scale and medium-sized farmers to mechanise. Zero-rating VAT on farm implements, same as tractors which don’t attract duty or VAT, will encourage mechanisation by reducing the cost of acquisition of implements one would need for a complete end-to-end solution in land preparation and management," Mr Kotecha said.
Noting that almost every farm would need a tractor to improve productivity, he added that any financial incentives extended to farmers towards mechanisation would be a boon to the economy through job creation as well as other multiplier effects that would accrue in the value chains.
According to the Agricultural Sector Transformation and Growth Strategy (ASTGS), mechanisation in Kenya stands at 30 per cent of arable land. The government intends to increase this to more than 50 per cent by 2029.
Mahindra tractors will be available in three variants offering 25 Horsepower (HP), 75 HP and 92 HP, namely Mahindra 2025, Mahindra 6075 and Mahindra 9200 respectively.
Dr Rono commended Simba Corp and Mahindra for the partnership, which he said is an indicator of the private sector’s confidence in the local economy, particularly agriculture.
“I am happy to note that Mahindra Tractors, renowned for its cutting-edge technology, robust design and fuel-efficient engines, is keen on supporting and empowering local large and small-scale farmers. This will go a long way in supporting government efforts to put more land into productive use, build a robust and efficient agricultural sector, while also improving livelihoods and contributing to economic growth," the PS said.
According to Mr Naresh Leekha, an executive at Simba Corp, the company has identified key markets in Western, Nyanza, Narok, Nakuru and Mombasa regions.
"We are delighted to bring Mahindra Tractors that are tough and efficient to the Kenyan market," said Mr Kedar Apte, Chief of International Operations, Farm Equipment Sector at Mahindra & Mahindra Ltd.
"This collaboration aims to strengthen the accessibility of Mahindra Tractors across Kenya and ensure prompt service and support. We aim to be the top choice of farmers in Kenya."
Mahindra tractors will be offered through six branches across Kenya located in Nairobi, Kisumu, Narok, Kisii, Mombasa & Nyeri as well as three tractor dealers located in Nakuru, Kericho & Nairobi. All Mahindra Tractors in Kenya will be offered with a warranty of 3 years or 3,000 hours from the time of purchase.
