A manufacturer, Mahindra Tractors has partnered with Simba Colt Aspire, a subsidiary of Simba Corporation Ltd, to launch three tractors as it seeks to strengthen its presence in the Kenyan agriculture market.
The companies are targeting about 4.5 million smallholder farmers from across the country with the tractors which will be available in three variants offering 25 Horse power (HP), 75 HP and 92 HP, namely Mahindra 2025, Mahindra 6075 and Mahindra 9200 respectively, each from a tune of Sh1.4 million.
The tractors, which all come with a warranty of 3 years or 3000 hours from the time of purchase, are available at all six branches of Simba Colt located in Nairobi, Kisumu, Narok, Kisii, Mombasa and Nyeri as well as 3 tractor dealers located in Nakuru, Kericho and Nairobi.
Speaking on Friday, February 16, during the launch that was officiated by Dr. Paul Rono, Principal Secretary (PS), State Department of Crop Development and Agricultural Research, Dinesh Kotecha, Group chief executive of Simba Corporation, said the government should zero rate the 16 percent Value Added Tax (VAT) currently levied on farm implements, among other incentives, including empowering farmers, and supporting farming mechanization.
“Zero rating VAT on farm implements, same as tractors which don’t attract any duty or VAT, will encourage mechanization by reducing the cost of acquisition of the various additional implements a farmer would need for a complete end-to-end solution in land preparation and management,” said Kotecha.
He noted 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 various crop value chains.
According to the Agricultural Sector Transformation and Growth Strategy (ASTGS), agricultural mechanisation in Kenya stands at 30 per cent of arable land. The government intends to increase this to over 50 percent by the year 2029, a move that will improve agricultural productivity and push the country towards achieving food security.
“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 farmer livelihoods and contributing to economic growth,” said PS Rono.
He added that the partnership is an indicator of the private sector’s confidence in the local economy, and in particular agricultural development opportunities in the country.
Naresh Leekha, Group managing director, motors division, Simba Corporation, said the partnership will revolutionize farming practices in the country, and that the company has already identified key markets in the western, Nyanza, Narok, Nakuru and Mombasa regions, with immediate roll-out plans that averages about 1,500 tractor sales annually.
“A customer wants a tractor that can be serviced across the country. So you walk out of a showroom stress free that you will not have a problem; we have a lot of braches where you can service your tractors… so we hope to grow this brand and transform the agriculture industry,” Leekha said.
Chief of International Operations, farm equipment division of Mahindra & Mahindra Ltd Kedar Apte, said the tractors are “tough and efficient” and that their main aim is to become the top choice for farmers in Kenya.
“The tractors are simple, but tough. They are also fuel efficient. We aim to be the top choice of farmers in Kenya,” Apte said.
