StanChart launches first Saadiq branch in Kenya

Central Bank Governor Prof Njuguna Ndung’u.

By LILLIAN KIARIE

NAIROBI, KENYA: Standard Chartered Bank Tuesday launched its Islamic banking offering under the brand name of Saadiq. Saadiq, which means ‘truthful’ in Arabic, represents the institution’s Islamic banking proposition offered across the world to Muslim and non-Muslim clients.

With this launch, Kenya becomes the first market for Standard Chartered’s African footprint in Islamic banking.

The launch comes on the back of plans by Kenya Commercial Bank to offer five products targeted at the Islamic community. Other banks that have ventured into Islamic banking include Barclays, Chase Bank and Equity Bank.

Speaking at the launch, Standard Chartered Bank Chief Executive Officer Islamic Banking, Afaq Khan said Africa is the next frontier for the Islamic Banking sector.

“If the Islamic market starts growing in Africa at the level it is growing globally today, it will become a significant part of the financial system in this region as well,” said Khan.

Global figures indicate that Islamic finance market is growing with investments now worth over $1 trillion. Locally, the Islamic banking industry has grown in under five years to account for 2 per cent of the total banking business.

“This shows Kenya’s huge potential and opportunity. As a major international bank with a long-standing heritage and a global network, Standard Chartered Bank is ideally placed for a prominent role in this ever-expanding market,” added Khan.

Stanchart Kenya Chief Executive Lamin Manjang said the offering comes as response to the increased demand from the bank’s customers.

“As a bank, we have listened and we have acted to satisfy our customers.  It is no secret that Islamic banking is growing rapidly in Kenya even though the Kenya’s first Islamic banking licences were granted just five years ago,” Manjang said.

“We are seeing more commercial banks open their doors to Islamic Banking products in a bid to satisfy a growing demand in the market,” he said during the launch.

TRIED AND TESTED

Manjang was optimistic that Africa is better placed to enjoy stronger growth than other Stanchart markets where Islamic Banking is already established due to Africa’s ability to adopt best practices already tried and tested in Asian and Middle Eastern markets.

Last week, Central Bank of Kenya (CBK) and the International Centre for Education in Islamic Finance (INCEIF) launched a programme to deepen Sharia banking in eastern Africa at the Kenya School of Monetary Studies (KSMS)

CBK and the centre through the school has designed a certification programme for senior bank and Sacco officials on the governance of Islamic transactions and products.

“In this arrangement, KSMS is leveraging on the expertise INCEIF has developed over the years in delivering a globally recognised certificate in Islamic banking,” said CBK Governor Njuguna Ndung’u at the programme’s launch.