Islamic banks ‘doing well’

The Central Bank of Kenya on Wednesday said Islamic banking had managed to bring more of the unbanked population into banking halls. Speaking at the first East African Islamic banking conference at a Nairobi hotel, Ms Rose Detho, who is in charge of bank supervision at the CBK said the concept had largely succeeded.

The first two fully-fledged Islamic banks, Gulf African Bank and First Community Bank were licensed mid last year. Five other conventional banks have introduced Islamic banking products. “The Central Bank is impressed that the Islamic banks that have operated for hardly a year have made milestones,” she said.

Ms Detho said the two banks have a combined asset base of Sh8 billion, while they now command a market share of 1 per cent. She said the total asset base for the banks in the country had reached Sh1 trillion, adding that there was potential for further growth in the sector. The two Islamic banks have a combined customer deposit of Sh5 billion.