Sharia compliancy to promote investment in Kenya

31/03/2011 - Kenya property & investment news Posted by Neil King
Sharia compliancy to promote investment in Kenya

Kenya's Central Bank is stepping up its game as it pushes to introduce a legal framework that would allow the country's financial services to offer Sharia-compliant investment opportunities.

Bonds and treasury bills should be introduced soon, Central Bank governor Njuguna Ndung'u told

His comments come days after the Gulf African Bank expressed interest in investing between three and four billion shillings a year in Kenya, if the necessary Sharia regulations are put in place.

Last year, the bank invested about one billion shillings in government securities.

It used a special category, entitled Sukuk, which features bonds that are structured to comply with Sharia.

Chairman of the Gulf African Bank Suleiman bin Shabbal commented: "We are capable to invest between Sh3 billion to Sh4 billion if they are Sharia-compliant.

"They have to stop being interest based."

He added that introducing the Sharia-compliant investment avenues will permit Kenya to tap into a $1.6 trillion Gulf region market.  ADNFCR-2019-ID-800482816-ADNFCR