(Ecofin Agency) - United Arab Emirates’ largest Islamic bank, Dubai Islamic Bank, should start its activities in Kenya by the end of 2016, Kenyan media revealed citing sources close to the process. The bank should thus become the third financial institution to provide banking services that are compatible with Islamic regulation in Kenya where 10% over a population of 44 million are Muslims according to official data.
DIB thus enters a much stressed Kenyan banking market, as bad debts of some banks rises. Recently, Chase Bank of Kenya was even placed under receivership as a result. In sight of this, the Central Bank of Kenya decided in November 2015 not to award any more licence.
Dubai Islamic Bank however applied before this decision was reached. The group which did not directly discussed the issue, has supposedly already started hiring staff in Kenya. In Africa where financial inclusion remains a challenge, Islamic finance seems to be growing and positioning itself beside traditional financial services.
