A KCB banking hall. The lender plans to offer Islamic banking products through its entire branch network. PHOTO | FILE
The Kenya Commercial Bank is set to launch its new Islamic banking unit after obtaining approval from the National Treasury.
KCB, the country’s largest lender by assets, was given the necessary exemptions of law by the government as it rolls out its Sharia compliant products.
“This is a big milestone for us as we seek to use the Islamic banking proposition to deepen the bank’s financial inclusion agenda that progressively looks at incorporating products and services to reach out to the unbanked population,” said KCB group head of Islamic Banking Jaafar Sheikh Abdulkadir.
The lender’s Islamic banking products, which are also available in its Tanzania market, target both Muslim and non-Muslim customers.
The Capital Market Authority had proposed a separate regulatory framework for Islamic finance as part of a broader strategy designed to boost the country's capital markets.
The KCB Sahl Banking rollout aims to provide a Sharia-compliant banking product, which prohibits the giving or receiving of interest and ensures that money is invested ethically in accordance with the Islamic faith.
In countries such as the United Kingdom and Malaysia, Islamic banking has been taken up by non-Muslims because its proposition fits well with most customer requirements.
Last year, Central Bank of Kenya and the International Centre for Education in Islamic Finance (INCEIF) rolled out a programme to deepen Sharia banking in Eastern Africa.
First Community Bank and Gulf African Bank are Kenya’s only fully-fledged Islamic banks.
In addition to the Kenyan operation, KCB Bank Tanzania is offering Islamic banking services which are well supported with the regulatory framework that is in place.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
