The first commercial bank operating entirely under Islamic Sharia principles has been licensed. Finance minister, Mr Amos Kimunya, has granted approval to First Community Bank Limited to conduct banking business according to Sharia, which prohibits the lending of money on interest. According to its lawyers, the bank is a joint venture between Kenyan and Kuwaiti nationals and has a paid-up share capital of Sh1 billion.
Barclays Bank of Kenya and Kenya Commercial Bank have both introduced Sharia-compliant banking products in the last year but with large numbers of Muslims still unbanked, the market niche is still considered untapped. Islamic banking as an industry has seen dramatic growth in acceptability globally.
KENYA: ISLAMIC BANK GETS MINISTRY APPROVAL
The first commercial bank operating entirely under Islamic Sharia principles has been licensed. Finance minister, Mr Amos Kimunya, has granted approval to First Community Bank Limited to conduct banking business according to Sharia, which prohibits the lending of money on interest.
