Kenya’s Islamic finance industry must do more to build public confidence by ensuring Shariah-compliant products meet Islamic requirements from design to delivery, Premier Bank Head of Shariah Department Sheikh Maulid Makokha has said.
Makokha said customers should be able to trust that financial products presented as Shariah-compliant are based on genuine Islamic principles and are not simply conventional products given different names.
Speaking at the Islamic Finance Forum and Dialogue Conference in Nairobi on Thursday, he said Shariah governance was central to maintaining the integrity of the sector, with scholars and compliance teams expected to examine both the structure of products and how they are eventually offered to customers.
“Let me assure anyone interested in Shariah-compliant products that this is not merely a theory or a change of terminology from interest to profit. There is a process behind these products, and that process ensures they are structured and implemented in accordance with Sharia principles.”
He said Islamic banks are required to establish Shariah boards that play a key role in approving and guiding the development of financial products and their supporting documents.
“Each and every bank has its own Shariah board, which is a requirement that for you actually to operate in a Sharia manner, there must be a Sharia board to, first of all, guide you on the product structuring, products and documentation and so on.”
Makokha said the scholars serving on these boards need to understand both Islamic law and modern financial practices to properly assess the products presented to them.
He said the review process draws from established sources of Islamic law, including the Quran, Sunnah, consensus and other principles of jurisprudence. The assessment also extends to the business or economic activity being financed to determine whether it is permitted under Sharia.
According to Makokha, approval of a product is only part of the process, with Sharia teams also responsible for checking whether financial institutions follow the approved structure when putting the product into use.
“Our work is to make sure that whatever has been approved by the Sharia team is what is being implemented on the ground. It is the product that you will get at the end of the day.”
His remarks come as Kenya continues efforts to strengthen the legal and regulatory environment for Islamic finance. The Banking Act recognises financial institutions operating under Islamic law and allows returns, rather than conventional interest, on certain savings accounts.
Islamic finance arrangements, returns from Islamic finance and Sukuk are also recognised under Kenya’s tax laws.
The Central Bank of Kenya’s National Financial Inclusion Strategy 2025–2028 identifies Islamic banking as an area that can help increase access to financial services. However, the strategy also points to challenges linked to the country’s legal and regulatory systems as well as the availability of specialised skills.
Sharia governance has also received attention internationally, with the Islamic Financial Services Board adopting principles in 2025 aimed at improving supervisory oversight of Sharia governance in Islamic banks, takaful institutions and Islamic capital-market institutions.
Makokha further urged the public and other players in the sector to take an active role in showing policymakers that there is demand for Islamic financial services.
“It is a constitutional right for you to practise it in a manner that is within your faith. And number two, let us show the regulators that indeed there is the business need.”
He called on consumers, businesses, scholars and other stakeholders to make their demand for Shariah-compliant products known, arguing that the growth of the sector cannot be driven by banks alone.
The Nairobi conference brought together financial-sector stakeholders to discuss the expansion of Islamic finance and ways of strengthening confidence in Shariah-compliant products among Kenyan consumers and businesses.