THE ROLE OF SHARIAH SCHOLARS IN THE GROWTH OF ISLAMIC BANKS IN KENYA: A CASE STUDY OF FIRST COMMUNITY BANK

Abstract

This study aims to investigate the roles that are played by shariah scholars that contribute on the growth of Islamic Banks in Kenya. The main objectives were to determine the impact of shariah governance on the growth of slamic Banks in Kenya, to establish the extent to which Educating the Public's influences the growth of IBS, to determine the Product approval by Shariah scholars influences the growth of Islamic banks in Kenya. The Bureaucracy and Growth theories contributed much in the study as they elaborated well how an organization can be brought up. Shariah governance, Educating the Publics on the benefits of financial products and services offered by Islamic banks and Product approval are the key roles of shariah scholars thus listed as independent variables as they were found to be the influencers of the growth of slamic banking which is the dependent variable. To achieve this, the research was conducted in the form of a descriptive study method because it identifies patterns and trends of events. The targeted population was the managers of FCB. A simple random sampling technique was used to identify the 10 sample size elements. Questionnaires were used to collect the primary data from 20 managers drawn from the banks because it’s cheap, saves time and man power to collect data from the field. Collected data were analyzed using Microsoft Excel and Statistical package for social scientists to compute descriptive statistics i.e. frequencies and ranges. Finally, the presentation of the results was done by use of graphs, charts, tables etc. For clarity and each of understanding of the findings. In conclusion the study found that it was Shariah Governance, Educating the Publics on Islamic financing products and Product approval were the key roles of Shariah Scholars that were 65.90% of factors that contributed to the growth of slamic Banks in Kenya. The study recommended the IBS should review, emphasis on training, advertising and create awareness of their services and products to a competitive level. About recommendations on Further study, the other studies to assess the factors that influence the growth of Islamic banks using the secondary data as the present study uses the primary data, Further study to be carried out to determine what other factors remaining 34.10% as the present study established 65.90% explained by Shariah governance, educating the Publics and product approval.