Barclays Bank of Kenya Ltd., the country’s third-biggest lender by market value, said it will begin offering a Shariah-compliant asset-finance product for corporates companies to meet growing demand.
The lender, based in Nairobi, has set aside $30 million for the so-called Corporate La Riba Asset Finance product, which offers fixed pricing and repayment periods of up to five years, Chief Executive Officer Adan Mohamed told reporters today in the port city of Mombasa.
“Although Islamic financing is still in its infancy, it is witnessing a rapid growth fuelled by surging demand for Shariah- compliant products and services from not only customers sensitive to the Islamic faith,” Mohamed said. “We are also witnessing an increase in the number of non-Muslims seeking these services.”
Shariah prohibits the payment and receipt of interest.
To contact the reporter on this story: Benard Sanga in Mombasa via Nairobi at firstname.lastname@example.org.