Africa-Press – Kenya. Starting a bank in Kenya requires one to have at least a capital of Ksh1 billion in Kenya according to regulations by the Central Bank of Kenya (CBK).
Popular Nairobi Lawyer Ahmednasir Abdullahi, received the green light to start First Community Bank (FCB) in 2008 after gathering a group of partners who were able to raise the money, including former Mandera Central MP Abdikadir Mohamed.
Abdikadir, a Harvard trained lawyer, is also Ahmednasir’s partner at Ahmednasir, Abdikadir & Company Advocates – and a former legal advisor to President Uhuru Kenyatta.
Other FCB founders include Hassan Varvani who is also the bank’s chairman, and Amir Nahdi – a Tanzanian businessman.
“I was having a chit-chat with the former Mandera Central MP, Abdikadir Mohamed, a really brilliant guy, and he suggested the idea and we thought it would work,” the lawyer revealed in a past interview.
FCB was the first fully-fledged Sharia-compliant bank in Kenya that mainly targets Muslim faithful.
The banking laws for Muslims are different since the Quran outlaws interest (riba) on money either borrowed or deposited.
Ahmednasir, a devout Muslim, is on record declaring that he has never taken loans, advising entrepreneurs against borrowing seed capital.
“Starting a business using credit is not a good idea, I wouldn’t do it myself. You have to generate enough seed money to start your business without borrowing.
“I have never taken a loan in my life. Business should also serve a greater cause than just making a profit, “ he stated in a past interview.
Upon meeting all the requirements, the CBK granted them approval to conduct the business of a bank.
As is required by law, this was followed by the acquisition of the primary location of the bank, IT systems and other necessary operating facilities as well as the recruitment of staff for the institution.
CBK officials were then invited to the business premises to conduct an inspection of the property and systems and the partners paid the requisite fees needed for a license.
“In exercise of the powers conferred by Section 2 of the Central Bank of Kenya Act, the Central Bank of Kenya specifies, for purposes of the Act, the bank set out below. First Community Bank Limited,” read the Gazette Notice by then-CBK Governor Njuguna Ndung’u.
In September 2008, former Finance Minister John Michuki exempted the bank from certain sections of the Banking Act in order to enable First Community Bank Limited to offer products that are Sharia-compliant.
Within six years of operation, the bank had an asset base of Ksh12.5 billion and more than 100,000 customers.
The bank owns the FCB Mihrab building in Kilimani which serves as its head office.
