Is Kenon (KEN) stock Halal?

Kenon is a diversified holding company based in Singapore, with interests primarily within the electricity generation sector. The company's principal asset is its majority ownership in OPC Energy an Israeli-based company that develops, constructs, and operates power plants. Kenon Holdings focuses on investments that not only promise growth but also strategically position the company in key emerging markets where energy demand is robust and increasing. For Muslim investors, though, the most pressing question is simpler: is Kenon a Halal investment?

Is Kenon Shariah compliant?

No. In the October 2026 screening Kenon (KEN) does not pass AAOIFI screening: it fails the non-permissible income, interest-bearing investments and interest-bearing debt screens. Supplying power, gas or water is a permissible service, so utilities like Kenon rarely trouble the activity screen. The pressure point is the balance sheet: grids and plants are among the most debt financed assets in any market, and AAOIFI Shariah Standard No. 21 caps interest bearing debt at 30% of market capitalisation, the screen that decides most utility verdicts.

Does Kenon pass the business activity test?

The activity screen is only part of the picture this month: Kenon currently fails the non-permissible income, interest-bearing investments and interest-bearing debt screens, so the overall verdict is not compliant regardless of the business itself. Delivering power or water raises no Shariah objection in itself; the scrutiny belongs to the debt behind the network.

Is Kenon's income Halal?

No. Kenon's income from impermissible sources currently exceeds AAOIFI's 5% revenue ceiling, which makes the stock non-compliant on this screen regardless of the others. The screen is reassessed monthly, so the status can change when new financial statements arrive.

Does Kenon meet AAOIFI's debt and investment ratio requirements?

No. Both ratios currently breach the 30% caps, measured against a market capitalisation of $3.14B (market data as of 1 October 2026): interest bearing investments and interest bearing debt each exceed the limit AAOIFI permits for a Halal investment. The ratios move with the share price as well as the balance sheet, and our Shariah Supervisory Board has KEN re-screened every month.

Why do other halal screeners show a different verdict for Kenon?

Screeners can disagree without either being wrong. AAOIFI Shariah Standard No. 21, which Tabadulat applies, measures interest bearing debt and investments against market capitalisation with a 30% ceiling. MSCI and FTSE measure them against total assets with a 33% ceiling, and S&P and Dow Jones Islamic use a multi year average of market capitalisation. Data dates differ too, because each provider reads filings and prices on its own schedule. The same company can therefore pass one standard and fail another in the same month. Tabadulat publishes one answer, the AAOIFI result as of October 2026, and re-screens it every month.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the screening method? Read What is Riba? A Clear Guide for Ethical Muslim Investing