Introduction of Sahl Banking
KCB Bank Burundi (ltd) is a bank operating in Burundi. It was approved by the Bank of the Republic of Burundi (BRB) in 2012.
It is a subsidiary of KCB Bank Group.
KCB Bank Group is the largest regional bank with 127 years of activity operating in all countries of the East African Community (EAC): Burundi, Kenya, Tanzania, Rwanda, South Sudan, Uganda, Democratic Republic of Congo and a Representative Office in Ethiopia.
Sahl Banking is a shariah-compliant product offered by KCB Bank Group since 2006 and 2008 in Kenya and Tanzania respectively.
Sahl Banking has been introduced to the banking sector in the Burundian market since September 2022, making KCB Bank Burundi a pioneer and the first bank to introduce a product that complies with Shariah principles.
It is a subsidiary of KCB Bank Group.
KCB Bank Group is the largest regional bank with 127 years of activity operating in all countries of the East African Community (EAC): Burundi, Kenya, Tanzania, Rwanda, South Sudan, Uganda, Democratic Republic of Congo and a Representative Office in Ethiopia.
Sahl Banking is a shariah-compliant product offered by KCB Bank Group since 2006 and 2008 in Kenya and Tanzania respectively.
Sahl Banking has been introduced to the banking sector in the Burundian market since September 2022, making KCB Bank Burundi a pioneer and the first bank to introduce a product that complies with Shariah principles.
What Does Sahl Banking Mean?
Sahl is an Arabic word meaning “easy” or “simple”. Sahl Banking is a window within KCB Bank conducts Shariah-compliant banking.
What is Shariah?
Shariah is the Islamic religious law that governs religious rituals and aspects of daily life in Islam. The fundamental principles of Shariah compliant banking are, for example, the prohibition of interest and excessive uncertainty in banking transactions. They are deduced from the four main sources. These are:
The Holy Quran.
Sunnah of the Prophet Muhammad (peace and blessings be upon Him). These two are the primary sources.
Ijmaa which is the consensus of Muslim scholars on a particular issue that is not explicitly dealt with in the first two sources.
Qiyas, which refers to the use of an analogy in deciding on one issue on the basis of a judgment on another issue. These are the secondary sources.
What Is Shariah-Compliant Banking?
It is a system of banking operations that conform to the principles of Shariah. Shariah prohibits the collection and payment of interest (Riba) and excessive uncertainty (Gharar) in all business transactions. This is in addition to the obligence not to engage in unethical practices in all financial transactions.
What Does Qard Mean?
Is a financial debt where the borrower pays an equal amount of money to return his replacement, and the main purpose of it is to help the borrower benefit from the money and return the same or its value, and it is not permissible for the purpose of earning a profit in return.