Strategic Factors Influencing Growth of Islamic Banking in Kenya: A Case Study of Gulf African Bank
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Date
2017-05
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Daystar University, School of Business and Economics
Abstract
The purpose of study was to investigate the strategic factors influencing the growth of Islamic banking in Kenya. Its objectives were to examine the strategic factors influencing growth of Islamic banking in Kenya, to establish the extent to which each of the factors has influenced the growth of Islamic banking in Kenya and to determine the challenges encountered by Gulf African Bank in its bid to grow Islamic banking in Kenya. To achieve the above, the researcher adopted a descriptive research design. The target population of the study comprised one hundred and ninety-five employees of Gulf African Bank at the head office in Nairobi. Stratified random sampling technique was used to select a sample size of fifty-five respondents. Questionnaires were used to collect data which was then coded statistically and then analyzed using Statistical Package for Social Sciences (SPSS) version 21 and Microsoft Excel to produce descriptive statistics such as percentages and frequencies. The study found that Islamic banking was recently introduced in Kenya and was taking shape in the Kenyan banking industry and that there were several strategic factor influencing Islamic banking in Kenya including their products, worldwide trend towards Islamic banking, shareholders’ need for returns and amendments to the banking. Further, in spite of the growth potential in Islamic banking, there were several challenges facing Islamic financial institutions and the shortage of experts in Islamic banking had been a great challenge in their growth and expansion. The study recommended that Shariah experts should produce new Shariah compliant instruments that meet the needs of both current and potential customers and that to effectively deal with the Islamic banking challenges, a legislative framework should be put in place to enhance the regulation of the industry.
Description
Master of Business Administration
in Strategic Management
Keywords
Strategic Factors Influencing Growth, Islamic Banking in Kenya, Gulf African Bank
Citation
Gitonga, L. K, (2017), Strategic Factors Influencing Growth of Islamic Banking in Kenya: A Case Study of Gulf African Bank: Daystar University, School of Business and Economics, Nairobi