Islamic finance is a $5.4 trillion market growing at 10% annually — yet small MFIs and SACCOs still can't afford compliant software. Kovara is changing that with Murabaha, Mudarabah, Musharakah, and Ijarah built into your core banking platform at a flat monthly fee.
Legacy platforms compromise Sharia integrity with bolted-on Islamic modes. Composable cloud-native platforms charge enterprise prices. Kovara delivers purpose-built Islamic products at a price that works for every institution.
Mambu talks about "composable" architecture. Temenos promises "configurable governance controls." Kovara ships a working Islamic core you deploy with a single command. No integration consultants required.
Your Sharia supervisory board needs direct access to transaction records and GL entries. Kovara Cloud hosts your instance in your regulator's jurisdiction, and self-hosting is available on Institutional for institutions where Shariah governance requires on-premises deployment.
Temenos serves Al Rajhi and Meezan Bank. Mambu targets neobanks. Kovara is purpose-built for the 300+ Islamic MFIs, SACCOs, and digital lenders that enterprise platforms aren't designed for.
Kovara's Islamic module isn't an afterthought bolted onto a conventional engine. It's a parallel product engine where profit-sharing replaces interest at the accounting level.
Cost-plus financing. Kovara purchases the asset, marks it up with a transparent profit margin, and sells to the borrower on deferred terms. Full amortization schedules with profit (not interest) tracking.
56% of Islamic MFI portfoliosProfit-sharing partnership. The institution provides capital, the entrepreneur provides effort. Profits split by pre-agreed ratio. Losses borne by the capital provider unless negligence is proven.
Investment & savings accountsJoint venture. Both the institution and the customer contribute capital. Profits and losses shared proportionally. Supports diminishing Musharakah for home/asset financing.
Growing for larger transactionsIslamic leasing. The institution buys the asset and leases it to the customer. Monthly payments cover rent plus an ownership component. Customer gains full ownership at term end.
Asset & equipment financingBenevolent loans. Zero return expected — the borrower repays principal only. Critical for poverty alleviation programs, emergency lending, and true microfinance for the poorest segments.
28% of Islamic MFI portfoliosSafekeeping deposits and cooperative insurance. Wadiah accounts hold member funds without interest. Takaful pools risk across participants — the Sharia alternative to conventional insurance.
Savings & risk managementMost platforms bolt Islamic products onto a conventional interest engine. Kovara builds them from the ground up with a separate accounting model.
There are excellent Islamic banking platforms. But they weren't built for a 500-member SACCO or a seed-stage fintech. Kovara was.
| Platform | Starting price | Self-hosted | Target market | Deploy time |
|---|---|---|---|---|
| Kovara EE | From $249/mo | ✅ Yes | MFIs, SACCOs, fintechs | Hours |
| Mambu | $100K+/yr | ❌ No (AWS only) | Neobanks, large fintechs | Weeks |
| Temenos | $80K+/yr | ≈ On-prem option | Tier 1–2 banks | 6–18 months |
| Azentio iMAL | $200K+/yr | ≈ On-prem option | Islamic banks (GCC) | 6–12 months |
| Finastra | $150K+/yr | ≈ On-prem option | Universal banks | 6–18 months |
The GCC has iMAL. Southeast Asian banks have Temenos. But who builds for the 300+ Islamic MFIs across Africa that can't afford enterprise licensing?
Home to Gulf African Bank and Taqwa SACCO (first Sharia-compliant SACCO). Banking Act amended in 2008 for Islamic finance. M-Pesa integration means Sharia products reach rural areas instantly.
Three licensed Islamic banks: Jaiz, TAJ, and Lotus. CBN tightening capital requirements to NGN 20B for non-interest banks. Over 900 MFBs could offer Islamic windows with the right software.
35% Muslim population. Sukuk regulations introduced in 2024/25 — signaling serious commitment. SACCOs and VICOBA groups increasingly demand Sharia-compliant savings and lending.
IFC just committed $40M in Islamic financing. Strongest West African market for Sharia finance. Orange Money and Wave integration means instant distribution.
Nyla (Mambu's client) launches here in June 2026 as Africa's first Islamic neobank — proof that demand exists. Over 500 licensed financial institutions could offer Islamic products.
Combined $3T+ market. Indonesia's Islamic finance grew 13% YoY. Malaysia's Islamic financing is 43% of all bank loans. Massive market — but small MFIs still underserved.
Many Islamic scholars and regulators require that financial records remain under the institution's direct control. Kovara Cloud hosts your instance in your regulator's jurisdiction by default, and self-hosting is available on Institutional for institutions where Shariah governance requires on-premises deployment — addressing Wadiah and Amanah custodial principles.
Your Sharia supervisory board needs direct access to transaction records and GL entries. Kovara Cloud hosts your instance in your regulator's jurisdiction, with self-hosting on Institutional when Shariah governance requires it.
Kovara Cloud hosts your data in-country (self-hosting available on Institutional). Data protection laws in Nigeria, South Africa, Kenya, and Tanzania all favor — or require — local data residency.
Kovara's accounting engine keeps profit calculations genuinely distinct from interest accrual — with full journal-level traceability your Sharia board can verify directly.
Kovara's Islamic banking module ships with EE later this year. Join the early access list to get first-mover pricing, shape the product roadmap, and start onboarding your Sharia board.