IMF warns Kenya of loopholes in Islamic banking regulation

Delegates at the East Africa Islamic Economy Summit in Nairobi in April. FILE PHOTO | DIANA NGILA | NMG

The International Monetary Fund (IMF) has warned that the rapid growth of Islamic finance in Kenya is happening without adequate protection of depositors as is the case with conventional banking.

The IMF says in a newly released report that Kenya is yet to refine its prudential regulations to cater for Islamic banking despite the fact that the Shariah banks are offering loan products that are collateralised differently from conventional bank loans.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.