- This will help the regulator fast-track decision-making in matters finance thereby enabling more Muslims to enjoy financial services that conform to their beliefs.
The Treasury has appointed members to the Islamic Finance Consultative Committee (IFCC) signalling Kenya’s readiness to increase financial products and services that are Shariah-compliant.
Capital Markets Authority (CMA) chief executive Paul Muthaura said this would help the regulator fast-track decision-making in matters finance thereby enabling more Muslims to enjoy financial services that conform to their beliefs.
“The formal appointment of the IFCC is yet another positive development as we firm-up the Islamic Finance advisory structures to prepare the ground for an Islamic finance policy and regulatory framework in Kenya,” Mr Muthaura said without disclosing details of the membership.
Three fully fledged Islamic banks, five Islamic windows, two credit unions/saccos, one Takaful company, one Retakaful window and one capital market unit trust fund operate in various parts of the country.
Mr Muthaura also lauded President Uhuru Kenyatta’s assent of the Finance Act 2017, saying it contains measures that support the growth of Islamic finance in Kenya through recognition of Shariah-compliant capital market products, provision of equivalent tax treatment of Shariah-compliant products with conventional financial products as well as exemption from payment of Stamp Duty on transfer of title relating to Sukuk. Sukuk is the Shariah-compliant equivalent of conventional bonds.
The changes also support asset-backed securities’ transactions and allows the government to invest in Sukuk.