Dar es Salaam. Muslim faithful and Tanzanians at large have been urged to embrace interest-free financial systems to promote broader financial inclusion, particularly for low-income borrowers.
Speaking at an Iftar organised by KCB Bank through its Sahl banking services, the chairman of the Sahl Services Board, Sheikh Khamis Mataka, said interest-free loans are a crucial tool for enabling economic growth without burdening borrowers with excessive debt.
He called on other financial institutions to adopt ethical financing models to reach more people.
Arusha Regional Sheikh, Sheikh Shaaban bin Juma, emphasised that Islamic financial systems provide a solution to challenges in accessing capital for small and medium-sized enterprises (SMEs).
He noted that interest rates have been a barrier for many seeking credit, and interest-free financial services could play a role in fostering economic development.
KCB’s Head of Islamic Banking, Amour Muro, said that the bank is committed to providing loans and other ethical financial services to ensure equal opportunities for Tanzanians to grow their businesses and investments.
One of the beneficiaries, Abdulrazack Msuya, shared that interest-free loans have helped him expand his business with ease, without the burden of additional charges.
He encouraged fellow Tanzanians to explore interest-free financial services as a means to avoid heavy debt burdens and achieve sustainable economic growth while adhering to their religious beliefs.
