Mwalimu Sacco CEO
Kenneth Odhiambo and National Chairman Joel Gachari during the unveiling of the
Sacco’s Shari’ah compliant offeringMwalimu National DT Sacco is diversifying its operations into through the launch of its Islamic finance window following regulatory approval, marking its entry into the growing faith-based finance segment in Kenya.
The Sacco is the latest to join the space that has been majorly attracting the banks.
Following the move the Sacco will now form a dedicated unit within its operations that will offer Sharia-compliant financial products and services alongside its regular (conventional) operations.
Kenya’s faith-based finance sector, particularly Shari’ah-compliant (Islamic) finance, has in the recent years shown renewed momentum as both demand and regulatory impetus pick up.
The segment remains a small share of the overall market, but stakeholders see expanding opportunities and rising investor interest.
According to Mwalimu Sacco CEO Kenneth Odhiambo, the approval from the Sacco Societies Regulatory Authority (SASRA) came after a two-year preparation process to ensure full compliance with Islamic finance standards.
“This is not just another product it’s a carefully structured offering built on the principles of Sharia and ethical finance. The regulator approved it about six months ago, and we took time to ensure all systems and oversight structures were ready,” Odhiambo said.
The product, aims to provide Sharia-compliant financial services to Muslim members and other clients seeking ethical banking alternatives.
He added that the Islamic finance window will operate as a separate business unit with its own financial records, accounts, and governance mechanisms to maintain strict adherence to Sharia principles.
Oversight will be provided by a specialized Sharia Council comprising experts in Islamic finance.
Mwalimu National Chairman Joel Gachari noted that the Sacco developed the product to cater to Muslim members who previously avoided conventional financial services.
“Many of our members could not fully participate because they do not take loans or dividends that accrue interest. This new offering provides a compliant alternative,” he said.
The Sacco has trained staff across its 22 branches and 14 satellite offices to support the rollout. It expects at least 20% of its 170,000 members to adopt the new offering within a year.
The launch comes as Kenyan regulators move to streamline oversight of Islamic finance, with several Saccos and financial institutions now developing Sharia-compliant products to deepen financial inclusion.
