The Central Bank of Kenya (CBK) has licensed the Dubai Islamic Bank - owned by the United Arab Emirates’ largest Shariah lender Dubai Islamic Bank - to carry out operations in the country.

CBK said in a statement that DIB intends to exclusively offer Shariah compliant banking services in Kenya.

“It becomes the third fully Shariah compliant bank to be licensed in Kenya, after Gulf African Bank Limited in 2007 and First Community Bank Limited in 2008,” said CBK Friday.

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The lender has a presence in Bosnia, Indonesia, Pakistan, Sudan, Turkey and the UAE.

End of licensing freeze

DIB's entry into the market marks the end of a moratorium imposed by the CBK on licensing of new banks.

“CBK welcomes the entry of international brands such as DIB into the Kenyan banking sector. DIBs entry will expand the offerings in the market, particularly in the nascent Shariah-compliant banking niche,” said the regulator.

Central bank said its entry signifies long-standing economic ties between Kenya and the UAE.

As at September last year, the Emirati bank had an asset base of $47.6 billion and capital of $7.4 billion.