Barclays Kenya launched Islamic products

Barclays Bank of Kenya Ltd (Barclays Kenya) has unveiled innovative Shariah compliant personal and vehicle finance products: La-Riba Personal Finance, and La-Riba Vehicle Finance.

As the first bank to launch Islamic products in Kenya, Barclays is committed to enhance the Islamic banking offering to ensure customers enjoy a rewarding banking experience, said the regional managing director of East and West Africa, Adan Mohamed.

Mr. Mohamed observed, “At Barclays Kenya we continuously look at ways of enhancing our financial products and services to ensure we anticipate and meet the evolving needs of our customers – this is key to our strategy.

“The products we are launching 13TH, February, 2010 are aimed at meeting the financial needs of customers and small business owners who need more specialised products than what conventional banking can offer.”

Customers will be able to purchase household goods and equipment under the La-Riba Personal Finance product, while La-Riba Vehicle Finance will be used to support customers to buy new and used vehicles.

Mr. Mohamed added, “The products were developed in consultation with Barclays Shariah Advisory Board and are Shariah compliant.”

The Regional Managing Director said that the product is based on Murabaha mode of financing which entails a cost plus profit.

He explained, “It is not a loan given on interest but sale of a commodity based on price and an agreed profit.

“Barclays Kenya first buys the goods, takes possession, and then resells it to the customer at a higher price representing the cost plus profit margin.”

He added that at the point of purchase, the client will know the specific cost, profit, and re-payment period.

Customers can purchase goods worth a minimum of Khs 50,000 and up to a maximum of Khs 1 million. Customers who bank at Barclays Premier Life and Barclays Premier Centres can access goods worth Khs 1.5 million and Khs 4 million, respectively.

The products can be accessed throughout the entire Barclays Kenya branch network and dedicated La-Riba Suites.

Mr. Mohamed added that Barclays Kenya has partnered with Nakumatt Holdings, CMC and DT Dobie to offer their goods to customers.

Source : aibim

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