Kenya-based KCB Bank is gearing up to launch Islamic banking products through its entire branch network, aiming to boost market penetration in east Africa’s largest economy.
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KCB Group CEO Joshua Oigara said the bank already secured the necessary approvals to launch Islamic banking products in its 182 branches in Kenya.
The recent announcement follows Kenya’s Capital Market Authority approval of a regulatory framework for Islamic finance to boost the country’s capital markets.
The bank will initially unveil sharia-compliant banking products and services through seven branch centers, beginning from next month.
Dubbed ‘KCB Sahal Banking,’ the new product from KCB is a Sharia-compliant bank account designed to address the sensitivities of Muslim customers who adhere to their faith, which forbids earning or payment of interest.
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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 marginalised areas of our country," said Oigara.
Islamic finance is expected to account for approximately 2% of total banking business in Kenya, where Muslims make up about 15% of the population of 40 million.
Standard Chartered has already begun offering Islamic banking services in Kenya in March, with the launch of its "Saadiq" brand. Other full-fledged Islamic banks in Kenya are Gulf African Bank and First Community Bank (FCB).
KCB, which operates across east Africa from Burundi to South Sudan, already offers Islamic banking services in Tanzania.
