A bank cannot credibly market its products as Shariah-compliant without a panel of Islamic scholars to scrutinise and approve its operations, Premier Bank Kenya’s Head of the Shariah Department Sheikh Maulid Makokha has said.
Makokha said the Shariah Supervisory Board (SSB) is the highest authority of Shariah scholars within an Islamic banking institution and plays a central role in ensuring products, transactions and decisions made by the bank comply with Islamic law.
Speaking during a Radio Generation interview on Tuesday, Makokha said the board provides an additional layer of oversight alongside the bank’s conventional governance structures, helping protect the integrity and credibility of Islamic banking.
“Apart from having a board of directors which is dedicated to achieving Shariah. Number two, we must have a board of Sharia scholars. This is what we call SSB. This is the topmost board of Shariah scholars,” Makokha said.
He explained that the Shariah board is not simply an advisory body but has a key role in checking decisions made by the bank’s Board of Directors to ensure they do not conflict with Shariah requirements.
“In fact, the board of directors has to report to them. They can't take any decision without approval from the Sharia board.”
Islamic banking is guided by principles that prohibit interest, excessive uncertainty and dealings involving prohibited activities. It also places emphasis on fairness, transparency and responsible financial transactions.
Makokha said these requirements make Shariah supervision an important part of how Islamic financial institutions develop and offer products to customers.
The SSB is involved in reviewing and approving financial products before they are introduced, while also providing guidance on transactions and other activities carried out by the institution.
According to Makokha, this oversight helps ensure that the principles approved by the scholars are followed consistently in the bank’s day-to-day operations.
He questioned how an institution could claim to provide Shariah-compliant banking services if it does not have an independent board of scholars to examine and approve its products and activities.
“So this is, if an institution does not have the Sharia board again, it should be. We shall have some questions. How are you operating? Who is approving your products? How should you claim that you have your Sharia compliant and you don't have this board?” he posed.
At Premier Bank Kenya, Makokha said the Shariah Supervisory Board has been part of the bank’s governance system since its establishment and works alongside the Board of Directors.
“At Premier Bank, we have a highly educated and well-composed Shariah Board that has been in place since the bank’s inception.”
He said the two boards maintain close coordination to ensure that recommendations and guidance issued by the Shariah scholars are put into practice.
“It has very good coordination with the Board of Directors, ensuring that whatever the Shariah Board guides is what is implemented,” he said.
Makokha said the continued involvement of the SSB ensures Shariah requirements are considered when decisions are made instead of being addressed after products or transactions have already been developed.
He added that the board also strengthens accountability by giving customers greater confidence that products presented as Shariah-compliant have been reviewed by qualified scholars.
The Shariah Supervisory Board therefore remains an important part of Islamic banking governance, linking the principles of Islamic finance to the products, transactions and decisions offered and made by the bank.