Shariah Banking And Financial Performance Of Selected Commercial Banks In Kenya

ABSTRACT As of December 2017, the Kenyan banking sector registered a decline in performance with the subdued economic activities. The industry reported a decrease in profit after tax by 9.6 % during the year 2017. A decline in asset quality was reported, with the NPLs ratio increasing to 12.3 % in December 2017 from 9.3 % in December 2016. The general aim was to establish how financial performance of selected Kenya commercial banks is affected by shariah-compliant banking. The research was guided by Innovation diffusion theory, Modern portfolio, and Agency theory. The descriptive research des…