[2008-08-06]  Brookside and KCB partnership a credit boost for farmers
Brookside Dairy wil work with Kenya Commercial Bank (KCB) to strengthen itself in the Uganda and Tanzania markets.

Executive chairman Muhoho Kenyatta said the company and the bank would enable farmers to obtain loans at favourable interest rates.

"We now have fully-fledged operations in Tanzania and Uganda and KCB can partner with us in introducing a loan arrangement for farmers," he said.

He said such partnerships exist in Kenya, where farmers, particularly in the Rift Valley and Central provinces obtain loans either as individuals or though their cooperative societies

Mr Kenyatta spoke during a ceremony to hand over a fleet of trucks worth Sh90 million to Brookside by General Motors East Africa in Nairobi yesterday.

The fleet represented half of the Brookside Dairy’s requirements that have been financed by Kenya Commercial Bank at Sh300 million.

Kenyatta said as the company spread its wings in the region and acquired new markets, there was need to constantly upgrade and expand its fleet to serve the market more efficiently.

In an effort to capture the East African Community market, Brookside opened sales offices in Dar es Salaam, Arusha and Mwanza in Tanzania last year.

KCB Chief Executive Martin Oduor-Otieno explained the tripartite partnership with Brookside and General Motors, where KCB finances the modernisation of Brookside fleet supplied by GM.

He said the vehicles were being financed under the bank’s Asset-Based Finance product’s installment sales facility.

GM Managing Director Bill Lay said the partnership was an example how the private sector could work together to support themselves and to build the economy.


Source: standard