Ayuta Range of Products.
‘Ayuta’ is a general terminology for rotating savings or table banking activities mainly among women in the Kenyan Somali community. The Ayuta Suite of Micro-Finance products is intended for friends, workmates, family and MSME business partners with a common bond e.g. traders in a similar sector or a given market; or staff with a common employer etc. The Ayuta range of products is generally group-based and are on co-guarantee basis. However, we seek to directly finance individuals while leveraging group savings and co-guarantees. Notwithstanding, group-initiated activities and investments will be financed at group level.
The Ayuta Suite of Micro-Finance has been designed to cater for the above groupings. However, a unique aspect of the Ayuta product is that it will mainly apply qard-hassan (profit-free benevolent financing) contract. This is arising from the fact that there is widespread mis-interpretation of profit vs. interest among very many Muslims. Many believe that ‘a shilling extra on top of the principal is interest, whatever the name’. It becomes even more complicated and un-acceptable when the mark-up, profit or return is annualised into a percentage. Consequently, these clients prefer to pay an administrative fee on a flat-rate basis rather than marking-up a return on their trade-based financing. We shall therefore charge a flat account maintenance fee for non-financed clients for both individual and group accounts.
Mifugo Kash Kash.
Crescent Takaful Sacco has designed a Pastoral Livestock Value-Chain trade based Financing, Marketing and Supply Management in Conjunction with Neema Slaughterhouse and various development actors. The product dubbed “Mifugo Kash Kash” is not purely a financial product; but a trade based product that applies Islamic Finance principles .Therefore, it should be viewed from broader perspective of the Livestock Value-Chain process rather than a pure financial product. It involves Producer & Trader (Pastoralists); a Financier (CTS) Terminal market (Neema).