Central Bank of Kenya (CBK) has licensed Dubai Islamic Bank Kenya Limited (DIB).
DIB becomes the third fully Shariah compliant bank to be licensed in Kenya after Gulf African and First Community Banks in 2007 and 2008 respectively.
DIB is a fully owned subsidiary of Dubai Islamic Bank PJSC (DIB PJSC) of the United Arab Emirates (UAE).
The licence has been granted under Sections four and five of the Banking Act after fulfillment of the stipulated requirements. DIB intends to exclusively offer Shariah compliant banking services in Kenya.
DIB PJSC was founded in 1975 and is the first bank to have incorporated the principles of Islam in all its practices making it the largest Islamic Bank in the UAE.
DIB PJSC as at September 2016 had an asset base of US$47.6 billion (Sh4.9 trillion) and capital of US$7.4 billion (Sh754.8 billion).
The bank has presence in Bosnia, Indonesia, Pakistan, Sudan, Turkey and UAE. DIB PJSC’s entry into Kenya is anchored on its strategic focus on enhancing its international presence.
In a statement, CBK said it welcomes entry of DIB into the Kenyan banking sector.
“DIBs entry will expand the offerings in the market, particularly in the nascent Shariah compliant banking niche,” it said.
This also signifies the first entry of a UAE bank in Kenya to support the long-standing economic ties between Kenya and the UAE. DIB’s choice of Kenya as its entry point into Sub-Saharan Africa signals Kenya’s growing stature as a premier regional financial services hub.