This study compares the financial condition and performance of the Islamic banks against those of the conventional banks in Kenya along the dimensions including profitability, liquidity and solvency. The study applies “descriptive financial analysis”...
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This study compares the financial condition and performance of the Islamic banks against those of the conventional banks in Kenya along the dimensions including profitability, liquidity and solvency. The study applies “descriptive financial analysis” research design and is longitudinal in nature spanning a period of six years from 2010 to 2015. A sample of seven banks has been studied covering two fully fledged Islamic banks and five non-Islamic banks under the same small peer group according to the CBK bank supervision report of 2014. Secondary data collected from the banks’ financial statements has been utilized in this study. The study concludes that the difference in profitability and solvency between the Islamic banks and the conventional banks is not statistically significant. On liquidity, however, Islamic banks have proven to be significantly better than the Non-Islamic banks.
JEL: G21, G24, E50
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