C1 [as Credit One Limited is commonly referred to] was founded on the following basis.

First: The demand for sound Islamic rib’ a-free capital from the Muslim masses was not and still is not matched by the supply of the same.

Second: There remains a low understanding among the Muslims of what Islamic finance [the so called Fiqh-ul-Mualamat] actually are and this see’s the Muslims regularly crossing into rib ‘a based transactions inadvertently.

Third: There is low confidence in the current Islamic financial institutions in Kenya with complaints from a lot of the Muslims that the Muslim banks do not differ much from the conventional banks in how they extend credit causing Muslims to shy away from not only depositing money with these institutions but also restricting their willingness and ability to borrow from these institutions. When looked at conclusively it became clear to us that the introduction of Islamic finance in Kenya and indeed in all jurisdictions where the Muslims lived as a minority had to be gradual and multi-staged so that the development of Islamic finance would be coupled with an extensive practical period of education to enable the Muslims masses to understand and participate in the process of the development of Islamic finance within their jurisdiction. This would be done in 5 stages:

Stage A [An Islamic Debt Bank]: An institution that facilitates the functions of lending will providing investment facilities for lending without taking deposits on the basis of the early “bank” of the Sahabah Abdur-Rahman bin Auf (ra). Essentially a Islamic loan brokerage that enables the Muslims populace to become familiar with the principals of Islamic finance and allows the wealthy a safe way to invest in loans of solid above average return in profit while performing a key social function [that being enabling the Muslims to gain access to finance without rib’ a].

Stage B [An Islamic Micro-Finance]: Once there was sufficient knowledge within the Muslim populace of the desired area then the wealthy who would have been the customers of the Islamic Debt Bank would then be asked to deposit their savings and investment capital in an Islamic micro-finance institution bring the Islamic Debt Bank’s institutional knowledge to bear while expanding the legal writ of the institution , enabling it to take deposits while continuing in the da’wah of educating the Muslims about how Islamic finance works and fighting against rib ‘a.

Stage C [Islamic Commercial Bank]: Once the Islamic micro-finance operates widely then through growth an Islamic Commercial Bank would be mooted with broader reach and would commence marketing among the non-Muslims as well.

Stage D [Islamic Financial Supermarket]: The nature of Islamic finance is such that many of the functions that traditional Islamic financial institutions would offer such as Takkaful (Islamic insurance), Venture capital, investment banking and fund management would require separate financial licenses. By commencing as an Islamic Debt Bank these services can be offered at the early stage and continue to be offered as the institution grows allowing for separate institutions to be spun off based on products offered by the institution.

Stage E [Expansion]: Once Stage D is complete the institution would expand into separate jurisdictions on the basis of getting the Muslims in those jurisdictions to invest in the institution in their jurisdiction thereby establishing homegrown, Ummah-owned sound Islamic financial institution for the Muslims living outside of the Sharia’h controlled economies permanently eliminating their need to participate in the rib ‘a economy. C1 is currently successfully navigating Stage A