Kenya: Standard Chartered launches Islamic Banking window
Standard Chartered Bank is to offer Islamic finance products under the brand name Saadiq.Standard Chartered Bank is to offer Islamic finance products under the brand name Saadiq.
The new window will offer Shariah compliant services such as personal banking
home financing, as well as business and corporate banking.
Standard Chartered Bank sees great potential for Islamic banking in Kenya with only two percent penetration to the total banking business, said Standard Chartered Bank's Global Head of Islamic Banking Wasim Saif, quoted by Capital FM.
He believes that Islamic banking could reach a double-digit growth
within the next five years, given that 10 percent of the country's population is Muslim.
"This will provide a platform for us to enter in other African markets that include Tanzania, Uganda, and Nigeria in two to three years," he added.
Kenya's large Muslim community and the growing demand for Islamic finance are forcing financial institutions to evolve and adapt in order to take advantage of this market.
Since the introduction of Islamic finance in the country in 2008, two Islamic banks (providing only Sharia-compliant products)
created, and many commercial banks and insurance companies now offer Islamic finance and insurance products, called Takaful.
The first Islamic re-insurance product in Kenya will also be launched by the Kenya Reinsurance Corporation in 2014.