• About Us
  • Archives
  • SWG Registration
Samrack Media
Mahiga Homes
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events
No Result
View All Result
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events
No Result
View All Result
Samrack Media
No Result
View All Result

Islamic finance roots grow deeper in Kenya

samrack by samrack
January 2, 2017
in 2016, Africa, Diaspora, Kenya, Kenya Diaspora News, News, People, U.S Diaspora
A A
0
Islamic finance roots grow deeper in Kenya
Share this
FacebookXPinterestEmailWhatsAppLinkedIn
Participants at a past Islamic finance forum. PHOTO | FILE | NATION MEDIA GROUP.

Islamic finance roots grow deeper in Kenya

By JAMES NGUNJIRI

The Insurance (Amendment) Act 2016 signed into law by President Uhuru Kenyatta last week, is set to enhance Kenya’s position as the premier Islamic financial hub on the African continent.

The move came a week after the Capital Markets Authority (CMA) was admitted by the Council of the Islamic Financial Services Board (IFSB) as an associate member of the board.

“The new law provides for the licensing and regulation of Takaful insurance business in Kenya in order to encourage international investment in this sector, which is a target area for the Nairobi International Financial Centre,” the Insurance (Amendment) Act 2016 reads.

Takaful is a co-operative system of reimbursement or repayment in case of loss, organised as an Islamic or Sharia-compliant alternative to conventional insurance products.

Standard setting

The IFSB, is based in Kuala Lumpur, Malaysia, it’s a global standard setting body, which promotes the development of a prudent and transparent Islamic financial services industry.

It does this through introducing new, or adapting existing, international standards consistent with Sharia principles and recommends them for adoption.

To date, IFBS has issued 26 standards, guiding principles and technical note for the Islamic financial services industry.

The decision to admit CMA was made at the 29th IFSB Council meeting held in Cairo, Egypt on December 14.

In October, the government launched the Islamic Finance Project Management Office (PMO).

The PMO is being overseen by the National Treasury with the technical and financial assistance of Financial Sector Deepening Africa (FSDA), and under the mandate delegated to it by Kenya’s Financial Sector Regulators Forum (FSRF).

The PMO is led by Islamic Finance Advisory and Assurance Services (IFAAS), an international consultancy firm specialised in Islamic finance, in collaboration with Simmons & Simmons, an international law firm.

CMA’s Chief Executive Paul Muthaura said the authority membership in IFSB is a key step towards the development of Kenya as an Islamic finance hub in the East African region, which is a critical component in the establishment of Nairobi as an international financial centre.

“Vision 2030 identifies financial services as a priority sector expected to play a central role and a key facilitator in the achievement of the vision,” said Mr Muthaura.

He added: “The economic pillar has, as one of its main strategies, the broadening of the product offering in the financial markets to both domestic and foreign investors. To help diversify the product portfolio, Kenya has for some time now been laying the foundation for making the country a financial services hub, with one of the focus areas being its emergence as an Islamic financial hub.”

The IFSB’s Islamic Financial Services Industry Stability Report 2016 indicated that, the global Islamic financial services industry reached an overall total value of $1.88 trillion in 2015.

There are expectations of the market size growing to $3.4 trillion by end of 2018, an 81 per cent growth.

In the first half of 2015, the global Sukuk (Islamic bonds) amount outstanding stood at $291 billion, while Islamic fund’s assets figure was $71.3 billion.

During the 11 months to November 2015, the Takaful (insurance) sector was established to be $23.2 billion, while the Islamic banking sector’s assets stood at $1.5 trillion.

Witnessed growth

According to the CMA, Kenya’s Islamic finance market has also witnessed substantial growth over the last few years with several financial sector institutions of Islamic orientation operating presently.

This include two fully fledged Islamic banks and five Islamic windows, two credit union/saccos, one Takaful company, one Retaful window and one Capital Market Unit Trust Fund, as of September 2016.

Mr Muthaura observed that based on the global trends, the Islamic finance industry in the country remains largely untapped considering the significant real economy funding needs, particularly in the infrastructure realm, that are well aligned to Islamic or alternative financing structures.

“As an aspiring Islamic finance hub, with the right facilitative environment, we have a real opportunity to attract investment and capital inflows both from Muslim and non-Muslims locally and internationally,” said Mr Muthaura.

He added: “Kenya is in a unique position and only needs to implement policies that will further facilitate Islamic finance for it to reap the benefits of such efforts.”

The Insurance (Amendment) Act 2016, also enables the operationalisation of risk-based solvency requirements for insurers that were introduced in the Finance Act 2013.

Among those proposals is a requirement that an insurer should maintain a 100 per cent capital adequacy ratio at all times.

Source: Daily Nation

 

Tags: Islamic finance roots grow deeper in Kenya
Previous Post

Kenya: smartphone helps lift maternity fees’ worries

Next Post

Transition/Death Announcement of Mr Joseph Kagotho Kenja brother to (Lucy Muthumbi aka Wasaimo) of Lowell,Massachusetts

Related Posts

President William Ruto during the launch of the Africa Green Industrialisation Initiative (AGII) on Saturday. Image: PCS
News

Ruto secures Sh682 billion for green development projects at COP28

December 2, 2023
Assistant Secretary of State for International Organization Affairs Sison’s Travel to Ghana
Africa

Assistant Secretary of State for International Organization Affairs Sison’s Travel to Ghana

December 2, 2023
Benson Mbugua Hinga through a tragic road accident in San Diego California on Monday night .
Diaspora

Memorial Service planned for the late Benson Mbugua Hinga Sunday December 3rd 2023 Family Baptist Church 438 Main Street Medfield Massachusetts from 4pm to 6pm

December 2, 2023
Mama Alice Wangui Mwaniki, in Nairobi, Kenya.
Diaspora

Promotion To Glory Alice Wangui Mwaniki

November 29, 2023
Benson Mbugua Hinga
Diaspora

Transition/Death Announcement of Benson Mbugua Hinga beloved son of Ben mbugua (uncle ben) and Lucy mbugua of Natick Massachusetts

November 29, 2023
Presidency Kenya/X Kenya's President Ruto has popularised the Kaunda suit
Africa

Kenya’s Parliament Enforces Dress Code Regulations, Restricts Kaunda Suits Within Premises

November 29, 2023
Next Post
Transition/Death Announcement of Mr Joseph Kagotho Kenja brother to (Lucy Muthumbi aka Wasaimo) of Lowell,Massachusetts

Transition/Death Announcement of Mr Joseph Kagotho Kenja brother to (Lucy Muthumbi aka Wasaimo) of Lowell,Massachusetts

Please login to join discussion
IKAN Business Partners IKAN Business Partners IKAN Business Partners
ADVERTISEMENT
ADVERTISEMENT
https://samrack.com/master-planned-and-fully-serviced-gated-communityherencia-is-a-premier-50-by-100-master-planned-gated-community-on-100-acres-along-bob-harris-road-off-thika-superhighway-exit-16/ https://samrack.com/master-planned-and-fully-serviced-gated-communityherencia-is-a-premier-50-by-100-master-planned-gated-community-on-100-acres-along-bob-harris-road-off-thika-superhighway-exit-16/ https://samrack.com/master-planned-and-fully-serviced-gated-communityherencia-is-a-premier-50-by-100-master-planned-gated-community-on-100-acres-along-bob-harris-road-off-thika-superhighway-exit-16/
ADVERTISEMENT
Royal Gardens Ngong Royal Gardens Ngong Royal Gardens Ngong
ADVERTISEMENT

Latest News

Ruto secures Sh682 billion for green development projects at COP28

Assistant Secretary of State for International Organization Affairs Sison’s Travel to Ghana

Memorial Service planned for the late Benson Mbugua Hinga Sunday December 3rd 2023 Family Baptist Church 438 Main Street Medfield Massachusetts from 4pm to 6pm

Promotion To Glory Alice Wangui Mwaniki

Transition/Death Announcement of Benson Mbugua Hinga beloved son of Ben mbugua (uncle ben) and Lucy mbugua of Natick Massachusetts

Kenya’s Parliament Enforces Dress Code Regulations, Restricts Kaunda Suits Within Premises

Engineer Hazel Wachira: Kenyan woman who turned Dreamliner into a cargo plane

Transition/Death Announcement of Mama Alice Wangui Mwaniki, in Nairobi, Kenya. Mama is mother to Nduta Mwaniki, and mother in-law to Joseph Oyugi, of Colorado

The United States Joins Kenya for Second Cyber and Digital Dialogue in Nairobi

Mixed fortunes as bipartisan talks end with no deal on cost of living

We are grateful for your monthly or one-off donations To Samrack Media: Cash App No: 781-888-8770 $SAMRACK001

Money

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency

by samrack
November 19, 2021
0

New Digital Skills Helps Unemployed Kenyan Youth Earn In Cryptocurrency This week sees the launch of a new initiative to equip...

A simple guide to Government Bonds investing in Kenya

A simple guide to Government Bonds investing in Kenya

by samrack
September 17, 2021
0

A simple guide to Government Bonds investing in Kenya A treasury bond (T-bond) is a medium term to long term...

Politics

Retired President Uhuru Kenyatta in Mwingi on November 19, 2023 Image: HANDOUT

Don’t blame me for your failures, Uhuru tells Ruto

by samrack
November 19, 2023
0

Don't blame me for your failures, Uhuru tells Ruto Former President says government should instead address problems facing Kenyans instead...

Kenya-Led UN Force Deploys to Haiti Amidst Security Concerns

A step closer to Kenyan police deployment in Haiti

by samrack
November 19, 2023
0

A step closer to Kenyan police deployment in Haiti Kenya's National Assembly has approved the deployment of 1,000 police officers...

  • About Us
  • Archives
  • SWG Registration

© 2023 SAMRACK - Diaspora News & Updates; design by: Samrack.

No Result
View All Result
  • Home
  • ALL NEWS
  • Diaspora
  • Africa
    • AFRICA
    • KENYA
  • BUSINESS
    • BUSINESS
    • INVESTMENTS
    • REAL ESTATE
    • TECHNOLOGY
  • Politics
  • Health
    • HEALTH
    • EDUCATION
  • Religion
  • People
    • PEOPLE
    • LIFESTYLE
    • RELATIONSHIPS
  • Obituaries
  • Videos
  • Events

© 2023 SAMRACK - Diaspora News & Updates; design by: Samrack.

Page generated in 1.004 seconds. Stats plugin by www.blog.ca