As the Coronavirus pandemic continues to disrupt businesses in Kenya, the Muslim community has been urged to take leverage on financial institutions offering affordable Shariah compliant financing to jump-start their businesses.
Mr. Khalfan Abdallah, an expert in Islamic financing, has urged the government to rethink how to accommodate Muslims in various financial support programmes such as the Youth and Women Fund among others, as they are excluded in the current financing structures available. “The government should allow Muslims to take financing in this difficult time without interest according to Islamic financing principles,” said Mr. Abdallah who is a board member of Momentum Shariah-compliant Financing, Sahih’s Supervisory Board.
Mr. Abdallah said that the government should borrow a leaf from Momentum Credit Micro Finance which has launched Sharia-compliant financing to Muslims using vehicle Log Books as collateral. “Momentum Sahih has proved that it is possible, and the government should explore ways in which it can offer financing solutions that are Shariah-compliant during this pandemic,” said Mr. Abdallah.
The official added that in seeking to bail out Muslims during these hard times, such affordable financial Shariah-compliant services are at an all-time necessity. Mr. Abdallah said the new product will allow Muslims and non-muslims to do business and access financing under Sharia Islamic laws. He observed that Muslims and non-Muslims have different demands on finances saying “the major challenge facing Muslims during this pandemic period is how to access financing without paying interest in accordance to the Islamic Financing Law.”
According to our Chief Executive Officer, Job Muriuki, Sahih Shariah-compliant Financing will allow the Muslims to use their assets, in this case a vehicle to get financing while still using the vehicle under the principle of Ijara Mutanhia Bitamleek.