NAIROBI (Xinhua) --
Kenya Commercials Bank (KCB) Group has
launched its Islamic Banking unit as it seeks to tap into the
growing demand for Islamic financial products across the East
KCB Group Chairman Ngeny Biwott said
the move is aimed at tapping investments in the Islamic
financial sector to help spur capital flows.
"This chapter is a milestone for our financial inclusion
and deepening agenda for the banking and financial services
sector to be accessed by everyone in the region," said
Biwott said the launch is part of the Bank’s long term
vision to diversify its product offering while riding on
technology as it reaches out to more citizens across the
East African region and beyond who feel left out by the
conventional banking system.
"Looking ahead into the next three years, this product
will progressively facilitate development in the
marginalized areas and deepen financial coverage," he said.
In addition to the Kenyan operation, KCB Bank Tanzania is
offering Islamic Banking services which is well supported with
the regulatory framework that is in place.
The Islamic form of banking which targets both Muslims and
non- Muslims has continued to gain traction globally with latest
statistics from the World Bank indicating that global Shariah
compliant financial assets have increased significantly over the
past three decades, reaching about 1 trillion U.S. dollars in
2010 up from about 5 billion dollars in the late 1980s.
It is expected that Islamic banking assets will grow at a
19.7 per cent over 2013-2018 to reach 1.6 trillion dollars by
2018. Currently, Sharia’h banking products account for 2 percent
share of the market share in Kenya.
The KCB Group CEO Joshua Oigara said with everything in
place, the Bank is ready to revolutionize the Islamic
Banking space in the country.
"As a Bank, we are continuously looking for ways in which
we can offer the best services to our customers," Oigara
For a start, KCB will roll out the Islamic Banking products
in six of its branches in Nairobi, Mombasa, Lamu, Wajir and
Garissa ahead of a national roll-out.
These satellite branches will serve as an operating model as
the Bank seeks to enhance quality growth to create sustainable