East Africa’s appetite for Islamic financial products has grown and in order to meet these needs KCB Group today launched its Islamic Banking unit. The bank will be rolling out Sharia’h compliant products. The new products which have received regulatory approvals from the CBK will be called “KCB Sahl Banking”
The KCB Sahl Banking (easy banking) provides Shariah compliant banking product, that prohibits the giving or receiving of interest and ensures that money is invested ethically in accordance with the Islamic faith. KCB will roll out the services to 6 of its branches ahead of national rollout. These are KCB Eastleigh, Kimathi Street, Hurlingham in Nairobi; Mwembe Tayari and Town Centre in Mombasa; Garissa and Wajir in North Eastern and Lamu. Some of the asset and liability products include Mudharaba, Qard Hassan, Wadia, Murabhaha,Musharaka and ijara.
KCB bank is diversifying its products offering as it uses technology to reach out to its current and potential customers across East Africa who feel left out by the conventional banking system. KCB Tanzania will also be offering an Islamic Banking service which is also supported by a regulatory framework.
KCB Group Chairman Mr. Ngeny Biwott said that the launch was a milestone for their agenda of financial inclusion in the region. It would also facilitate development in marginalized areas and increase financial coverage in the banking sector.
The KCB Group Chief Executive Joshua Oigara said that the bank is constantly innovating its products so as to provide the best services to customers.
Cabinet Secretary National Treasury, Henry Rotich said that the government will continually review the Banking Act and Prudential Guidelines to reflect this new reality as is the case in South Africa, Europe, the United States, Canada, the Middle East, and Australia.