NAIROBI, April 7 - Gulf African Bank has announced plans to list on the Nairobi Stock Exchange (NSE) in the next five years.

Acting Chief Executive Officer (CEO) Salim Abdalla Friday said that through the implementation of various projects such as product development, the Shariah compliant bank would register unprecedented growth and profitability after which they would invite the public to share in their success.

Although the Shariah Law does not allow them to mix money obtained from their clients with conventional money, he said once they floated their shares, they would accept money from anybody who wants to be a shareholder.

"We are not going to investigate where you got your money from," he assured.

While opening the third branch along Kenyatta Avenue, the CEO said they would continue to expand into areas they deemed lucrative so as to attract people without access to financial services.

"We believe that the new branch will bolster our presence and make our services more accessible to many Kenyans who are yearning for alternative banking solutions that Shariah banking offers," he said of the new outlet based in Hughes Building in Nairobi's Central Business District.

He disclosed that in line with their strategy to enhance its distribution channels across the country, two outlets in Mombasa and Garissa would be opened in the next six to seven months and they would later venture into the region.

"We think that Tanzania and Uganda presents a great opportunity for us," Abdalla enthused.

The bank, which brings the total number of commercial banks in Kenya to 45, will be offering a range of services including the opening of current, saving, and investment deposit accounts, and the financing of goods and services designed for customer segments such as children, students and corporates.

Asked whether the bank was going to invest in the mobile phone company's Safaricom shares, Abdalla said the bank's Shariah Board was sitting to determine whether or not they would buy them for their clients.

"If the board gives its approval for the transaction, then we will go ahead and buy the shares," he added. The decision, he said would be announced in a week's time.

The Shariah law however does not allow such institutions to charge interest on customer deposits or offer loans, thus they would be trading in assets and even venture into offering mortgages. "If for example a client wants to buy a car, we will buy the car for him and sell it to him at an agreed profit," the official explained.

The institution, which started its operations in January 2008 serves both Muslims and non-Muslims, and has recorded significant growth since inception. It already has a client base of 750 customers. With a paid up capital of Sh1.75 billion, the Islamic bank, which was licensed in September 2007 has the private equity investment wing of the Government of Dubai and PTA Bank as its high profile shareholders. The shareholders say the bank will provide the link between the surplus capital in the Arabian Gulf Countries and opportunities in Kenya and East Africa.