DIB Bank Kenya, a subsidiary of Dubai Islamic Bank, has opened a new branch at a popular mall in Nairobi, which will serve as an information hub for customers seeking trade financing between Kenya and United Arabs Emirates (UAE).

The Shariah-compliant lender on Monday said the move to locate its branch at the busy Sarit Centre mall will help it offer convenience to clients as it seeks to increase lending to small and medium-sized enterprises hard pressed for financing, the Business Daily newspaper reported.

The new branch replaces the one that was previously at a nearby location. DIB said with the headquarters of its parent firm based in UAE, it is strategically positioned to facilitate trade deals between Nairobi and Dubai.

“We are confident that we will be able to serve our existing and potential customers better and continue to strengthen our presence in the market," said Rose Kagucia, acting chief executive at DIB Bank Kenya.

"Shariah banking is fast gaining popularity in the country and this branch will serve as an information hub for customers.”

The chargé d’Affaires at the UAE embassy in Kenya, Khalifa Al Rayssi, said DIB and other players in the financial sector hold a key place in promoting Kenya-UAE business ties.

"The investment, business, and financial relationship between Kenya and the UAE hold immense promise for both nations. The presence of the UAE banks in Kenya has enhanced access to financial services and fostered greater economic integration between the two nations,” he said.

DIB Bank Kenya Limited was incorporated in 2014 as a fully owned subsidiary of Dubai Islamic Bank. 

In October 2022, Kenya announced it will strengthen trade ties with the UAE, in a statement from the president's office.

The two countries would expedite trade agreements and establish a joint panel to investigate investment partnerships in oil and gas, technology transfer, agriculture, healthcare, and the development of Special Economic Zones.

According to the UAE's state news agency WAM, said the talks proposed by the UAE and Kenya on a Comprehensive Economic Partnership Agreement (CEPA) were the first of its type between a Gulf Arab state and an African country. 

WAM said such an agreement would boost the total value of UAE-Kenya non-oil bilateral trade, which grew to $2.3 billion in 2021. Through the CEPA, the UAE and Kenya aim to remove trade barriers on a wide range of goods and services.

(Editing by Seban Scaria seban.scaria@lseg.com)