Organisations offering sharia-compliant financial services plan to set up a lobby group to champion for better legal and regulatory framework to boost growth of this sub-sector.
They have consequently formed a team to prepare for the Association for Islamic Finance in Kenya scheduled to be unveiled soon to advocate for better policies.
The team was unveiled at an Iftar dinner hosted by Aqeel Consulting Ltd over the weekend at the Intercontinental Hotel.
According to players in the Islamic finance, lack of an association has been holding back growth of the industry.
“Formation of an association will help come up with necessary legal and regulatory framework critical for the growth of the industry. It will help put up a united front in lobbying for requisite policy and legal changes,” Takaful Insurance of Africa Group CEO Hassan Bashir said.
Kenya is the first country in East Africa to introduce Islamic Finance and in the last eight years the country has licensed two full-fledged Islamic banks - First Community and Gulf Africa bank. The country also has a sharia –compliant insurance company -Takaful Insurance launched in 2014, three sharia-compliant saccos and one investment fund.