Regulatory framework needed to boost Islamic finance sector-Sheikh Sukyan
The sector is an expanding frontier in Kenya’s economic landscape, and there is a need for policymakers and regulators to ensure that competence, integrity, and understanding are embedded into Islamic finance
Regulators and stakeholders in the financial sector have been urged to strengthen policies that nurture the growth of Shari’ah-compliant financial systems.
Learning institutions and the judiciary have also been called upon to expand awareness and legal frameworks supporting Islamic finance.
The call was made by the acting Chief Kadhi Sheikh Sukyan Hassan Omar, who advocated for robust measures to further entrench Sharia-compliant policies and legal frameworks, saying that this will position Kenya as a regional hub for Islamic finance.
He emphasized that the sector is an expanding frontier in Kenya’s economic landscape, and there is a need for policymakers and regulators to ensure that competence, integrity, and understanding are embedded into Islamic finance, as this will increase access to ethical and faith-aligned financial services across the country.
“It calls upon the government, Sacco Societies Regulatory Authority (SASRA), (SASRA), the Central Bank, Capital Markets Authority (CMA), and other relevant regulators to establish robust and clear regulatory frameworks that guide this rapidly expanding sector. The future of finance in Kenya must be inclusive of Shariah-compliant systems, and the time to act is now’,” he said.
“Our judiciary and legal fraternity must also prepare to handle disputes that arise in this specialized area. Islamic finance law requires nuanced understanding of Shariah principles, contractual forms, and ethics,” he added.
Sheikh Sukyan, who is also the deputy Chief Kadhi, spoke on Wednesday November 5, 2025, during the launch of the Mwalimu National SACCO Shariah-compliant financial window. The product known as “Mualim” offers Muslim members and other clients ethical, interest-free financial services in line with Islamic banking principles.
The acting Chief Kadhi commended the Sacco for its bold move in fostering financial inclusivity as he urged the Sacco’s board to safeguard Mualim’s sustainability through sound financial, human, and institutional investment.
“You have recognized the financial needs and faith-based sensitivities of your Muslim members and have ensured that they too can save, invest, and benefit from SACCO services without compromising their religious values. That is indeed justice, fairness, and equality in action,” he said.
The Mwalimu National Chairman Joel Gachari noted that the Sacco developed the product to cater to Muslim members who previously avoided conventional financial services. “Many of our members could not fully participate because they do not take loans or dividends that accrue interest. This new offering provides a compliant alternative,” he said.
Chief Executive Officer Kenneth Odhiambo reaffirmed the Sacco’s devotion to serving the diverse needs of its members with integrity and foresight. “Through this window, we are delivering ethical, sustainable, and profitable financial alternatives that are entirely interest-free, empowering members to thrive while upholding their faith and moral principles.”
In maintaining strict adherence to Sharia principles, the window will operate as a separate business unit with its own financial records, accounts, and governance mechanisms. A team of experts in Islamic finance has been put in place to ensure that the product conforms with Islamic law.