Tuesday 7th May 2019, Nairobi: Isuzu East Africa (Isuzu EA) has today signed and announced the first ever Shariah compliant asset finance partnership with Gulf African Bank targeting Muslim owned SMEs and business. The partnership will see Muslim and non-Muslim clientele alike enjoy up to 95 per cent Shariah compliant structured financing on Isuzu D-max, N series trucks and F series trucks for a period of one year.
Speaking at the signing ceremony, Isuzu EA Managing Director, Rita Kavashe, mentioned the numerous benefits the partnership is set to offer borrowers at a time when Shariah compliant financing is still low in the country.
“We are delighted to be signing and announcing this unique partnership to the country. We strongly believe this partnership has come at the right time and will provide numerous opportunities for Muslim owned SMEs to access Shariah compliant asset financing to grow their business,” said Rita. “The partnership will allow customers keen to buy Isuzu models enjoy up to 100% financing with funds being released within a day after a 72-hour approval process. This will serve to enlarge, as well as expand and diversify our business base,” added Rita.
Rita noted that innovation and forging partnerships is at the forefront of this Islamic financing program in order to meet the requirements of Muslim owned business that prefer Shariah complaint banking.
“Through innovation and a strategic partnership with Gulf African Bank, to guide us on Islamic financing, we have stepped in to service Muslim clients who demand Isuzu financed products consistent with Islamic financial principles,” noted Rita.
Gulf African Bank CEO, Abdalla Abdulkhalik, expressed the Bank’s delight in signing the partnership noting that it will be a big win for Muslim business owners who continue to miss out on such opportunities.
“We are very excited to be signing this partnership that will see our customers enjoy business growth. Kenya’s Islamic finance industry is over a decade old but is yet to realize its full potential and make the desired impact in promoting linkages between financing and the real economy. Through this partnership, we are confident that more Muslim business owners stand to benefit and grow their businesses,” said Mr. Abdalla.
Mr. Abdalla further noted that customers will also benefit from the Murabaha Scheme where there is 100 per cent financing, a financing period of up to 60 months and a 60-day moratorium on brand new trucks where there is a body to be built or a trailer. Islamic banks make a profit through equity participation which requires a borrower to give the bank a share in their profits rather than paying interest.
Isuzu EA mentioned that the various asset finance partnerships signed with other leading conventional banks has seen growth in vehicle sales and financing of up to Ksh 1.9 billion worth of assets to the market.
