Use arbitration to solve Islamic finance disputes

With the growing number of the Islamic financial service providers in Kenya, we are bound to experience a significant increase in the value and volumes of the financial as well as commercial transactions generated within the industry. As the uptake of the Islamic finance products increases, we should also expect to see a proportionate increase in Shariah commercial and financial disputes with time.

It is important to appreciate that compliance with the Shariah principles is an integral part of Islamic finance. Shariah in essence refers to a set of well-defined rules, teachings and values that governs and regulates the lives of Muslims. The Islamic teachings encourages mutual dealings and exchange of commodities or other necessities through buying, selling, provisions of gifts, donations, lending and establishment of debt and other contractual obligations. However, such dealings and exchanges should be devoid of violence, misappropriation, dishonesty and fraud. The true spirit of brotherhood, honesty, fairness and justice should form the basis of exchanges and dealings .