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Qard hassan and social inclusion: exploring the role interest-free loans in promoting financial inclusion in Kenya

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Date
2023
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Abstract
This study aimed to assess the impact of qard hassan loans on social inclusion in Kenya by addressing the problem of limited access to conventional financing for small businesses and individuals. Using a qualitative approach, we conducted in-depth interviews with beneficiaries and stakeholders from ten prominent banks to explore the experiences of qard hassan recipients and the current situation and practices regarding qard hassan financing. Our findings suggest that qard hassan loans play a crucial role in promoting financial stability, personal goals, and business growth among recipients, particularly benefiting those who may face difficulties in accessing conventional financing. The interest-free nature of the loans contributes to sustainable economic growth and fosters social inclusion in Kenya. Through engagement with stakeholders in the banking and financial sectors, we identified challenges and opportunities associated with implementing and scaling qard hassan financing schemes. The study highlights the potential for further growth and development of Islamic finance in Kenya, which could contribute to job creation and overall economic development. In conclusion, it is essential for policymakers, financial institutions, and other stakeholders to continue promoting and expanding interest-free financing options like qard hassan to boost the economy, create more employment opportunities, and foster social inclusion in Kenya, ultimately providing valuable resources and support for individuals and communities in need.
Keywords
Qard hassan , Social inclusion , Interest-free loan , Small businesses , Kenya , Project paper (eMIF)
Citation
Mohamed, A. A. (2023). Qard hassan and social inclusion: exploring the role interest-free loans in promoting financial inclusion in Kenya (Master dissertation). INCEIF, Kuala Lumpur. Retrieved from https://ikr.inceif.org/handle/INCEIF/3946
Publisher
INCEIF

Available in PDF format. Kindly email to kmc@inceif.edu.my to access the item

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