Evaluation of islamic banking products and financial performance of Islamic banks in Kenya
The objective of this study was to evaluate the effects of Islamic banking products on the profitability of Islamic banks in Kenya. Annual financial statements of two Kenyan fully fledged Islamic banks from 2008 to 2011 were obtained from the CBK and Banks annual report. The data was analyzed using linear regressions method to measure the performance of key financial performance variables and financing contracts. This study made use of secondary data in analyzing the relationship between Islamic banking product and financial performance of the 2 fully fledged Islamic banks licensed by CBK. The secondary data was obtained basically from published annual reports of the selected banks and data collection form for individual product data for items not appearing on the financial statements.A set of statistical techniques, Multiple R F-value, determination (R2) and significance level, by researcher to analyze the relationship between dependent and independent variable. The results indicate a strong positive relationship between product size. and amount and financial performance of Islamic bank in Kenya F -value and significance level of less than 0.5, regression relationship between Islamic bank products and profit before tax is statistically significant. As a result, any change in the size of Islamic banks product will have an effect of the earnings of the bank.