DEMISTIFIES THE CONCEPT OF SHARIAH BANKING IN KENYA

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TUM - School of Business (SOB) in conjunction with Gulf African bank organized a one-day public lecture to shed light on what puzzles many of how Shariah oriented banks make profit or at least stay afloat without charging interest from its customers. The concept was well articulated by the head of shariah banking of Gulf African Bank, Mr. Nassir Abdul Wahab during his presentation at the workshop. He made it known that all Islamic Banks earn profit through trading with their customers, forming business partnerships with their customers through assets ownerships, leasing of assets or services to customers at specific period as well as offering interest free loans which are backed by assets as collateral.

Contrary to Conventional banking, shariah banking does not entail financing activities, assets or services that are Islamically deemed unlawful (haram). This ethical banking system takes into consideration the avoidance of uncertainty of gambling hence assuring its clients profit and loss sharing.

He also highlighted the mandatory Shariah screening process for all loans applications to ascertain shariah compliance.

This lecture set to guide and prepare the Business students for the ready market as Mombasa is a Muslim dominance region with the highest consumer of the said service.