Kenya Commercial Bank (KCB) has launched plans to deepen its foray into Islamic finance as it eyes eight Sharia-compliant branches by year end.
The lender has opened a second branch in Wajir town through its Islamic finance arm, Sahl Banking, after it set up another branch on Nairobi’s Kimathi street dedicated to offering Sharia-compliant financial products and services.
KCB group chief executive Joshua Oigara said the bank is keen to tap into the rising demand for Islamic products in the country backed by its quest to broaden financial inclusion to millions of Kenyans left out by the conventional banking system.
“The move is part of the bank’s long-term vision to expand its presence, and diversify its product offering and innovation to support the Islamic financial needs,” he said.
The bank plants to leverage on its e-payments agenda to increase customer adoption through incorporating digital technology in Sharia-compliant products.
“In 2016, we are focusing on increasing uptake of Sahl Banking by taking the services near customers and making them efficiently accessible to all through mobile and Internet banking,” said KCB head of Islamic banking Jaafar Abdulkadir.
The bank said it is keen on enhancing the quality of customer experience by having dedicated centres in selected locations such as Eastleigh, Mombasa, Lamu and Garissa.
Islamic finance industry has expanded rapidly over the past decade, growing at between 10 and 12 per cent annually, according to World Bank.
Sharia-compliant financial assets are estimated at roughly Sh200 trillion ($2 trillion), covering bank and non-bank financial institutions, capital markets, money markets and insurance.
