(Ahlul Bayt News Agency) - Two banks - Gulf African and First Community - are operating fully pursuant to Sharia-compliant banking principles, although up to five other commercial banks are also offering Sharia-compliant banking products alongside conventional products.
Insurance firm
And three weeks ago, Kenya's first Islamic insurance firm, Takaful Insurance, was launched. The company opened its first branch in Eastleigh, Nairobi last week.
With these developments, a comprehensive change is needed in Kenyan banking laws to implement interest-free economic systems, according to Islamic banking scholar Ali Mohamed.
Mr Mohamed said the Insurance Regulatory Authority should limit the number of licences of takaful (Islamic insurance) companies and focus on the development of standards and regulations for this industry.
IRA chief executive Sammy Makove said that by licensing the first Islamic insurance firm in East, Central and Southern Africa outside Sudan, Kenya had shown leadership. He asked the management of the firm to turn the expectations of the market into reality.
Mr Mohamed said that although IRA supports Islamic insurance, challenges abound.
"Lack of a regulatory framework, sound corporate governance, skilled human capital and Sharia-compliant investment strategy are some of the main challenges for this new industry," Mr Mohamed, who also heads a Qatari Islamic investment firm's audit, told Sunday Business.
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