May 27th 2017

Business / News

Islamic banking market set to deepen with UAE's largest lender entering Kenya

CBK has now welcomed the entry of international brands such as DIB into the Kenyan Banking Sector which will improve the sector and expand the offerings in the market. This also signifies the first entry of UAE Bank in Kenya to support the long-standing economic ties between Kenya and UAE.

By Liza Makenalmakena@kenyafreepress.comFriday, 28 Apr 2017 12:25 EAT

A Dubai Islamic Bank outlet in UAE.

The Central Bank of Kenya (CBK) has announced the licensing of the third fully Sharia compliant bank in the country, raising prospects of intense competition in a market that has grown over the past decade since the first entrant commenced operations.

The Central Bank of Kenya announced today that DIB Bank Kenya Limited (DIB) has received its license under Sections 4 and 5 of the Banking Act after fulfillment of the stipulated requirements, joining Gulf African Bank established in 2007 and First Community Bank which launched operations in 2008.

DIB is a fully-owned subsidiary of Dubai Islamic Bank PJSC of the United Arab Emirates (UAE) which was founded in 1975 as the first bank to have incorporated the principles of Islam in all its practices and is now the largest Islamic Bank in the UAE. DIB PJSC’s entry into Kenya is anchored on its strategic focus of enhancing its international presence, which include subsidiaries in Bosnia, Pakistan, Indonesia, Sudan and Turkey.

CBK has now welcomed the entry of international brands such as DIB into the Kenyan Banking Sector which will improve the sector and expand the offerings in the market. This also signifies the first entry of UAE Bank in Kenya to support the long-standing economic ties between Kenya and UAE. It will also lead to creation of good relationships in both local and international countries thus create awareness to the public.

This choice by DIB to use Kenya as its springboard of entry into Sub Saharan Africa signals Kenya’s growing stature as a premier regional financial services hub, CBK said in a statement.

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