Investment bank unveils shariah compliant division

Ugas Mohamed, CEO of Capital Markets Authority (center) joined by the Standard Investment Bank management team during the launch of SIB Najah in Nairobi on November 22, 2023. [Denis Kibuchi, Standard]

Standard Investment Bank (SIB) has unveiled a Shariah-compliant investment banking division dubbed SIB Najah, and the division’s flagship product, MansaX Shariah.

The launch of the division comes as the Capital Markets Authority (CMA) advocates for inclusivity in the market, which will have Shariah-leaning investors participate fully.

CMA Chairman Ugas Sheikh Mohamed, who spoke at the launch of the SIB Najah in Nairobi yesterday, said having Shariah-compliant products in the market is not a religion but a market issue. He said some of the products in the market, which include the affirmative action programmes run by the government, lock out many who would have wished to participate.

“The issue of inclusivity is a constitutional right,” said Mr Mohamed.

“Our Muslim community in this country are not participating in social funds...to uplift the economy of the mwananchi.” He pointed out financial literacy challenges in the market, particularly on Shariah-compliant products, which he said requires the players to be proactive in educating the public. 

SIB Executive Director for Islamic Investment Banking Abdullahi Omar Adan said the division will put investors’ money in equities, fixed income, and corporate finance and will also do wealth management.

“We will advise you (investors) on which stocks are compliant with Shariah law,” he said.

Nairobi Securities Exchange Chairman Kiprono Kittony described the launch as a good sign in the market, which debunks the narrative of doom that has clouded the performance of the market for the better part of the year.

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