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Research Paper | Finance | Kenya | Volume 6 Issue 6, June 2017 | Popularity: 6.7 / 10

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Influence of Government Regulation on Adoption of Islamic Banking by Kenya Commercial Banks

Patrick Macharia Ndirangu, Agnes Njeru

Abstract: Islamic banking system was initiated in Kenya nearly three decades back through restructuring banking rules and ordinance i. e. , it imposed alterations in operations of conventional banks. However, the Islamic banking (IB) still seems to have comparatively low market share due to a low adoption rate of its product and services. This study seeks to influence of Government regulations on adoption of Islamic banking by conventional commercial banks in Kenya. The study used descriptive research design which targeted 1876 Islamic banking customers of Kenya commercial bank. The sample was composed of 10 % of the population and the finding was used to model the relationship between the various selected variables and then tested there explanatory power on adoption rate of Islamic banking. Primary data was collected using semi- structured questionnaires whereas Secondary data was also obtained from written sources such as published and unpublished materials, reports, scholarly journals and periodicals, working papers, and records. A pilot study was done on the area of study in order to measure the validity and reliability of the data collection instrument. The study used SPSS version 21.0 to model the relationship between the various selected variables and tested there explanatory power. After the analysis the data was presented through the use of various presentation tools such as graphs pie charts and tables.

Keywords: Islamic Banking, Government Regulation, Adoption, Kenya Commercial Banks

Edition: Volume 6 Issue 6, June 2017

Pages: 620 - 625

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