Expanding the Islamic Financial Services Frontier: Lessons from Islamic Finance Sector in Kenya

Kenya is a Muslim minority country in which Islamic banking and finance has assumed great importance in recent years. From a humble beginning in the form of Islamic windows with limited products and services, the concept has gradually enlarged to encompass full-fledged Islamic banks. This paper describes the historical development and overview of the Islamic Financial Institutions in Kenya. It also highlights the key areas that have contributed to the growth of the Islamic financial services sector namely, Shariah governance, niche market strategy and promising regulatory environment.