Kenya Gov’t to support growth of Islamic finance

The government is keen to enhance the growth of Islamic finance in the country and will support moves to sustain and further develop the sector. Central Bank of Kenya chairman Muhammad Nyaoga lauded the development of Islamic finance saying the government recognizes its positive contribution to the economy.

“We are open to supporting Islamic products that deepen the market as they enhances financial inclusion in the society,” he said recently at an iftar dinner that brought together practitioners in the Islamic finance sector. Speaking at the same event, the chairman of the Insurance Regulatory Abdirahim Haithar Abdi said while there has been a steady growth in Islamic finance in the country, he called for more awareness programmes which will increase the uptake of Islamic banking and insurance. “There is still misunderstanding about Islamic banking and Insurance both among Muslims and nonMuslims and this need to be addressed,” he said.

In his comments, the head of Islamic Banking at Kenya Commercial Bank Jaafar Sheikh Abdikadir spoke on the need for Islamic financial institutions to come together to form a platform which can be used to further the growth of Islamic finance in the country. “This is the first time that players in the industry have come together and we should use this opportunity to explore ways of forming an association which will drive the Islamic agenda in the country,” he said.

On his part, the chairman of the Takaful Insurance Group Hassan Bashir commended the government for putting in place an enabling environment which has enabled the Islamic finance to flourish in the country. In his keynote address, Prof. Abdullatif Essajee, a director at First community Bank
said with a growing Muslim middle class population, there is great potential for the development of Islamic finance in the country.

“These developments have enabled the formerly unbanked Kenyans and specifically the Muslim communities in the country to have access to financial services adding to the wealth creation in the economy,” he said.

Source: Friday Bulletin.