Barclays Bank of Kenya has today launched a Shariah compliant Asset finance product tailored for corporate customers and re-launched an enhanced Vehicle Finance product for the Retail market. The product dubbed La Riba Asset Finance will enable corporate customers wishing to acquire moveable assets both locally and internationally overcome hurdles of acquiring them.

The Corporate  La Riba Asset Finance based on Murabaha, a cost plus profit Islamic Finance instrument has been designed to help Barclays corporate customers identify assets they wish to acquire upon which the Bank buys the assets, takes possession and then resells the asset to the customers at an agreed price. This means that the facility is not a loan given on interest but sale of a commodity based on cost and agreed profit.

“We at Barclays Kenya already offer a wide–range of Shariah compliant products and services to our customers. In 2010, we launched a similar product to our retail customers more importantly small business owners who wanted to buy new or used assets to support their businesses. Today, we have gone a notch higher to extend this product to our corporate customers due to growing demand.” Said Barclays Kenya Managing Director Adan Mohamed.

Mr. Mohamed added that the La Riba Asset Finance facility will meet the needs of corporate customers seeking both small and large scale Shariah compliant asset financing by purchasing assets like Motor Vehicles, Plant and Machinery, IT Equipment and other movable assets.

Customers can access financing from a minimum of KES 500,000 worth in assets with no maximum limit since the facility approval is based on the customer’s ability to repay the loan.

La Riba Asset Finance product has been developed in consultation with the Shariah advisory board which guides, reviews and approves all Barclays Shariah compliant products. This includes design to completion including approval of appropriate financial instruments/concepts, pricing methods and contracts signed with customers.