Isuzu and GAB ink deal to facilitate Shariah compliant asset financeMay 21, 2019
NAIROBI, Kenya, May 7 – Isuzu East Africa (Isuzu EA) has today signed and announced a Shariah compliant asset finance partnership with Gulf African Bank targeting Muslim owned SMEs and businesses.
The partnership will see Muslim and non-Muslim clientele alike enjoy up to 95 per cent Shariah compliant structured financing on all Isuzu models including Isuzu D-max, N series trucks and F series trucks.
Speaking at the signing ceremony, Isuzu EA Director of Finance & Strategy, Charles Kariuki, 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 strongly believe this partnership has come at the right time and will provide numerous opportunities for borrowers to access Shariah compliant asset financing to grow their business,” said Kariuki. “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,” he added.
Charles Kariuki noted that innovation and forging partnerships is at the forefront of this Islamic financing program in order to meet the requirements of customers who 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 clients who demand Isuzu financed products consistent with Islamic financial principles,” noted Kariuki.
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 Abdalla.
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 Sh 1.9 billion worth of assets to the market.