6 Best Islamic Shariah Compliant Banks

Sharia law compliant banks

Islamic banking shariah laws prohibits collecting or recieving interest (riba or usury) after giving out loans to borrowers.Money should not generate money on itself unless some business activity is involved.

Islamic Financial Institutions (IFC) are run under the guidelines of the Islamic Economic Shariah laws.Each money depositor to an IFC is considered a shareholder entitled to gain a share of the financial institutions profits.

IFC borrowers are expected to get interest free loans as per the Islamic Economic laws. Furthermore,the lenders and the borrowers are expected to share the risk.

In Kenya, Islamic banking is growing at a good pace since setting  foot in the year  2013.Thanks to Barclays bank of kenya the lariba bank for being involved.Later several banks jumped in to provide islamic banking services through sections or windows.These include but not limited to KCB ,Chase bank of Kenya now SBM and NIC bank of kenya.However, the Islamic community in kenya felt that its important to have 100% Islamic banks.

As Loans Kenya ,we have much interest in loans.Let's look at the lending contracts allowed by the Economic laws of Islam.

  • Murabaha- This is a sale contract.
  • Mudaraba- its simply part financing.
  • Musharika- its a partnership.
  • Ijara- it's rental or lease.
  • Istinaa -sale yet to exist property.
  • Salam- sale yet to exist agricultural goods.
The financial institutions in kenya following the above lending contracts and are 100% shariah banks include but not limited to;

  1. First Community Bank of Kenya
  2. Gulf African Bank of kenya
  3. Middle East Bank of kenya
  4. Dubai Bank of kenya
  5. Bank of India kenya
  6. Bank of Baroda kenya.
Though the Kenyan financial legislation, rules are not clear on islamic banking ,the above lending institutions are currently serving the islamic community in kenya.


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