By W, KNA
Absa Bank Kenya has marked a major milestone by celebrating 20 years of Dariba, its Sharia’h-compliant banking service, at an event that also witnessed the launch of the Association for Sharia’h Compliant Services Providers, a body expected to strengthen the growth of Islamic finance in the country.
The celebrations, attended by regulators, financial leaders, and stakeholders, highlighted both the achievements of the past two decades and the promise of a stronger future for Islamic finance in Kenya.
Capital Markets Authority (CMA) Director of Market Operations Justus Agoti praised the strides the industry has made since its introduction but reminded stakeholders that important gaps still need to be addressed.
He identified lack of awareness, limited collaboration, and the absence of a standardized certification process for Islamic finance professionals as barriers to sustainable growth.
“We have come a long way, but awareness and appreciation gaps remain. More needs to be done to educate the public and dispel misconceptions about Islamic finance,” Agoti said.
He urged regulators, banks, and government agencies to work together to push the agenda forward.
Agoti revealed that the CMA developed white papers on Islamic finance in 2017, covering areas such as insurance, capital markets, and banking, but noted that implementation had stalled.
He called for collective action, including petitioning the National Treasury to fast track a comprehensive policy framework.
“We need a five- to ten-year roadmap that aligns with national goals. Without this, progress will remain fragmented,” he said.
Elizabeth Wasunna, Managing Director of Consumer Banking at Absa Bank Kenya, said the bank’s 20-year journey in Sharia’h banking was deliberate and rooted in inclusivity.
She explained that Dariba was designed to ensure all Kenyans, regardless of background, could access financial services in line with their faith and values.
“Just as conventional banking evolves, Sharia’h compliant banking must also innovate to meet the needs of all customers,” she said.
Wasunna announced the launch of Absa’s Women in Business proposition under the Dariba platform to empower female entrepreneurs. The program, she said, would provide women with tailored financial solutions that comply with Sharia’h principles, enabling them to expand their businesses and access new opportunities.
She emphasized that customer engagement remains central to Absa’s strategy. “Feedback is a gift,” she told participants, urging both clients and non-clients to share their views to help the bank refine its products and services.
Wasunna also credited Absa’s Sharia Board for consistently ensuring that products remain compliant. She noted that all Absa branches across Kenya have been equipped to engage with customers on Sharia’h-compliant solutions, making the services more accessible across the country.
Yusuf Kungu Omari, Chief Finance Officer (CFO) and Executive Director at Absa Bank Kenya, reflected on the humble beginnings of Islamic finance in Kenya. He recalled how, 20 years ago, a team of five pioneers introduced the concept at Jamia Mosque, sparking important conversations on compliance.
“The biggest challenge came when we went to the Central Bank of Kenya, where regulators struggled to understand how profits could be made without charging interest. After lengthy deliberations, approval was cautiously granted,” Omari said.
He noted that the sector has since expanded from a few basic products to a diverse portfolio, including Sharia’h-compliant debit and credit cards, digital lending platforms, insurance solutions, and dedicated branches. This growth, he added, demonstrates the resilience and innovation of Islamic finance in Kenya.
Looking ahead, Omari stressed that the future of the industry depends on a robust regulatory framework that sets clear standards and policies. “The number one question customers ask us is whether our products are truly compliant. While Absa has a Sharia Board and conducts audits, only a national framework can guarantee long-term confidence among both Muslim and non-Muslim clients,” he explained.
The launch of the association was hailed as a landmark moment, bringing together regulators, banks, scholars, and stakeholders to chart a united course for the sector. Participants agreed that Kenya has the potential to become a regional hub for Islamic finance if it strengthens compliance, builds awareness, and fosters innovation.