Standard Investment Bank (SIB) has launched SIB Najah, a Shariah-compliant investment banking division, and its flagship product, MansaX Shariah.
Regulated and domiciled in Kenya, this fund provides investors a platform for ethical global market investments. It prioritizes assets compliant with Islamic principles, avoiding investments in interest-based activities and industries such as alcohol, pork, entertainment, and tobacco.
“SIB Najah is the investment division of SIB that provides Shariah-compliant investment banking solutions in the region,” stated Abdullahi Omar Adan, executive director of SIB’s Islamic Investment Banking division.
Further adding “We have several offerings; our flagship product the wealth management fund known as Mansa X open to anyone with a minimum joining balance of KES 100,000 or USD 1000.”
This move aligns with the Capital Markets Authority’s (CMA) drive for market inclusivity, urging the participation of Shariah-leaning investors. Ugas Sheikh Mohamed, CMA Chairman, emphasized during the launch that the inclusion of Shariah-compliant products is not a religious matter but a market imperative, addressing the constitutional right to inclusivity.
Mohamed highlighted the lack of participation from the Muslim community in social funds and government affirmative action programs, stressing the need for financial literacy on Shariah-compliant products.
Abdullahi Omar Adan, SIB’s Executive Director for Islamic Investment Banking, outlined the division’s focus on equities, fixed income, corporate finance, and wealth management, providing guidance to investors on Shariah-compliant stocks.
The initiative responds to the demand for ethical investments within the Islamic community, overcoming challenges like a lack of awareness and skilled professionals in Islamic finance.
Shariah banking has gained momentum in Kenya, primarily due to the fast-growing Muslim community. Some fully-fledged Shariah-compliant banks in Kenya include Dubai Bank of Kenya, First Community Bank of Kenya, Gulf African Bank of Kenya, and the Middle East Bank of Kenya.
