| dc.description.abstract | Grounded in theory, this study looks into the current realities of Islamic Banking in Kenya from the perspective of the factors that led to its emergence and the regulatory challenges facing the industry.
A thorough survey of existing literature was undertaken and a list of factors relevant for emergence of Islamic Banking and regulatory challenges was prepared. An interview guide was created based on the issues listed. A total of 17 Managers and Shari'ah Board members of all banks that provide Islamic Banking products were interviewed. The data collected, which was both quantitative and qualitative, was analyzed using both statistical analysis and inference building.
The limited information on this infant sector of the Kenya's banking sector reveals that Islamic Banking emerged as a financial innovation because of worldwide trends towards Islamic Banking, market demand from the Muslim population in the country, shareholder expectation of returns and amendments to the Banking Act. Islamic Banking in Kenya however, faces formidable challenges from the regulatory environment. The study revealed that the legislative framework in the currently militates against the full development of Islamic Banking in the country | en |
