Gulf African Bank in Shariah financing partnership deal with Toyota Kenya of up to 95%
Nairobi, Kenya, April 15th, 2021… Premier Shariah compliant bank, Gulf African Bank and Toyota Kenya have entered into a strategic financing partnership that will enable the bank’s Corporate and SME customers purchase Hino trucks and buses, and Hilux single and double cab pick-ups through diminishing Musharakah-based vehicle financing.
Under the Shariah financing model, the bank and the customer both contribute to the purchase of the vehicle creating co-ownership, where Gulf African Bank will extend financing up to 95% of the value of the unit, repayable by the customer within a period of 60 months.
Educational institutions will nonetheless receive up to 100% financing for Hino school buses, an amount payable in 60 months, but with a three-month repayment holiday. In addition, customers who may wish to purchase personal vehicles from the Toyota or Suzuki models will be offered upto 90% financing.
Toyota Kenya Managing Director, Arvinder Reel, said the partnership with Gulf African Bank opens up more opportunities for investors or customers looking at alternative financing models for the acquisition of commercial vehicles to further their businesses.
“We however also look at this partnership as yet another route through which customers can enjoy the benefits of owning brand new passenger vehicles such as the Toyota Starlet, Corolla Cross, Suzuki Brezza and others at an affordable pricing that starts from Ksh2 million.”
Speaking during the signoff ceremony, Gulf African Bank’s Deputy CEO, Anuj Mediratta said, “We are confident that by partnering with like-minded institutions like Toyota Kenya, we are going to play a critical role in spurring private sector growth in the country especially during this period of Covid 19 when most businesses have been affected. This financing arrangement is available to both GAB and non-GAB customers seeking Shariah compliant financing to purchase different types of motor vehicle models and motorcycles on offer from Toyota Kenya to ease their logistical challenges. This partnership further reinforces our position as the leading Shariah compliant asset financing partner in Kenya”.
Mr. Reel added, “Our Hino trucks and buses lineup provides appropriate solutions that address the rigours of any business because of the understanding of the local terrain and demands of customers businesses. We intend to continue building solid partnerships with financial institutions to ensure that more Kenyans get to enjoy the benefits of owning a Hino truck or bus. Additionally, through our growing network of branches and dealerships across the country, customers should be assured of quality Toyota Kenya service and after sales from any part of the country.
Gulf African Bank
Gulf African Bank is the Premier Shari’ah compliant Bank in Kenya, offering products that address the needs of not just Muslims, but everyone in the country through fair, safe and ethical banking practices. Gulf African Bank is a pioneering Islamic Bank not only in Kenya but also in the entire East African region, whose shareholders include: Istithmar World (the investment arm of the Government of Dubai); Alsalam Bank-Bahrain (a leading regional bank headquartered in Bahrain); Sheikh Abdullah Mohammed Al Romaizan (a leading investor from Saudi Arabia); Trade Development Bank (Previously PTA Bank), IFC (The Private Investment Arm of World Bank) among others.
Toyota Kenya Limited
Toyota Kenya Limited is a subsidiary of CFAO Automotive, a division of the CFAO Group. CFAO Automotive distributes the Toyota brand in 34 East, West and Central African countries, as well as in the French overseas territories. Headquartered in Nairobi, Toyota Kenya is currently the sole distributor and service provider of Toyota, Yamaha motorcycles and Hino trucks in Kenya, and an appointed distributor of Suzuki brand. The company has a network of 33 branches, dealerships, and approved Toyota Service Centres across the country.