The Islamic banking system employs different Shariah contracts based on its clients financing needs. One such contract is the bay al salam or a forward sale contract. This study examines how best Islamic banks in Kenya could use bay al salam to finance agricultural farmers in North-eastern Kenya. Furthermore, the study investigates how financial technology can be used to enhance its application. Takaful risk mitigation measures are highly essential in the proposed hybrid model; hence the study examines how best to incorporate its schemes in the model. The study employed a qualitative approach, where primary data sources are extracted from the study s respondents, consisting of Islamic banking and insurance industry practitioners, horticultural farmers, regulatory authorities, fintech firms among other. The study also relies on secondary data sources for content analysis on the salam contracts and its various applications globally. The research revealed that financing gap exists, and there is a lack of awareness of agri credit products by the farmers in the region. Additionally, the research found that financial institutions currently didn t have financing products for the market segment. Hence, the paper proposes a model that enables Islamic banks to leverage on the use of technology in utilizing the Salam contract towards providing sustainable finance to the marginalized farmers. Additionally, the research revealed that integrating takaful schemes in the bay al salam financing process could help reduce the risks faced by financial institutions.
