KCB Bank is planning to launch Islamic banking services across all its 182 branches in Kenya next month in a move to expand its sharia-compliant product offering in the East African region.
The KCB Group CEO Joshua Oigara said the bank has received the necessary approvals to offer Islamic banking in all 182 KCB branches in Kenya.
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The move follows proposal of a separate regulatory framework from Kenya’s Capital Market Authority for Islamic finance to increase the country’s capital markets.
The bank will initially offer Islamic banking services through seven branch centers including KCB Kilindini, KCB Kimathi, KCB Eastleigh, KCB Garissa, KCB Lamu, KCB Mvita and KCB Mwembe Tayari.
KCB already offers Islamic banking services in Tanzania and KCB Sahal Banking is planning to launch Shariah compliant banking product for Muslims and non-Muslim customers that prevents earning or payment of interest.
Oigara said: "Islamic banking proposition is part of our financial inclusion agenda that progressively looks at incorporating products and services to reach out to the unbanked population. The product dubbed "KCB Sahal Banking" is a Shariah compliant bank account designed to address the sensitivities of Muslim customers who adhere to the Muslim faith.
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By GlobalData"In the long term, the product will bring new levels of efficiency by widening the variety of banking products and service offerings as well as promote development in the marginalized areas of our country," added Oigara.
Jaffer Abdulkadir, KCB’s head of Islamic banking said the bank will continue to work with the team of Shariah scholars and religious leaders to ensure ongoing Shariah compliance of KCB Sahal Banking.
"The KCB Islamic banking targets both Muslims and non-Muslims. In countries such as the United Kingdom and Malaysia, Islamic Banking has been taken up by non-Muslims because its proposition fits well with customer requirements," Abdulkadir added.
