IslamicFinance.de

With the growing number of the Islamic financial service providers in Kenya, a proportionate increase in Shariah-related commercial and financial disputes is also expected. In Kenya there is no comprehensive legal and regulatory framework that governs the application of Shariah principles. Arbitration as a form of Alternative Dispute Resolution (ADR) mechanism is gaining in popularity owing to the time and cost it takes to resolve disputes. The disputing parties can select the arbiters and the proceedings can be held in private away from the media glare and therefore does not damage reputations and destroy brands. Islamic financial providers need to ensure that arbitration clauses are factored in their contractual documentations to take care of the need to seek sound Shariah determination of commercial disputes.