They agree that the move will significantly cut operating costs by removing additional expenses needed to comply with regulators such as the Central Bank of Kenya (CBK).

Islamic financial institutions have to comply with Sharia laws as well as CBK guidelines, hence double compliance.

Takeful CEO Samayya Hassan says that it is strainsome to operate with double compliance requirements, a factor she says puts them in a disadvantaged situation against their competitors.

“When we have a dual level of compliance, that increases operation costs. Our hope is that the review which is currently going on will resolve in regulation that is specific and this will help us to grow and broaden and deepen financial inclusion in our areas. We want a regulatory framework that is very much enabling,” she said.

Her sentiments were echoed by Islamic financial expert Ahcene Lahsasna, who marvelled at the move, pointing out that it will streamline the Islamic financial sector as well as raise financial literacy in their areas.

“With this momentum I do believe the Islamic financing will be increasing. This creates more consistency and more promotion to the Islamic financing and answers alot of enqueries,” he said.

“This improves the financial literacy in the market which is related to islamic finance.”

“Some innitiative is in the pipeline relating to sharia laws and the legal act framework and some guidlines which will strengthen the infrastracture of banking in the country,” he added.