Business
Nakibinge asks MPs to pass Islamic Banking Bill
Publish Date: Jul 14, 2014
Nakibinge asks MPs to pass Islamic Banking Bill
Prince Nakibinge said there are so many Bills to come but of interest to him was the Islamic Banking Bill.
  • mail
  • img
newvision

By Umaru Kashaka  

THE titular head of Muslims in Buganda Prince Kassim Nakibinge has appealed to the Speaker of Parliament Rebecca Kadaga to find out why the Islamic Banking Bill 2014 up to now has not been passed.

Speaking as a guest of honour at the Iftar dinner for Muslim leaders to break their Ramadhan fast organized by Kadaga at Parliament on Thursday, Nakibinge said there are so many Bills to come but of interest to him was the Islamic Banking Bill.

“The Bill has been in corridors of Parliament and Cabinet for the last eight years or so. I don’t know why it has failed to be passed, but I ask Madam Speaker to look into this,” he implored.

Islamic banking also called participant banking is defined as banking activity that is consistent with the principles of the Islamic law (Sharia) and its practical application through the development of Islamic economics. 

The basic principle of Islamic banking is based on risk-sharing which is a component of trade rather than risk-transfer which is seen in conventional banking. Sharia prohibits the fixed or floating payment or acceptance of specific interest or fees for money loans.

However, the lack of trained and skilled professionals has been pointed out as a challenge that could impede the implementation of Islamic banking in Uganda. 

Industry players have also expressed their caution in this regard due to the foothold of conventional banking as well as the lower economic power held by Ugandan Muslims.

Nonetheless, the prospects of Islamic Banking remain relatively promising with a 12% Muslim population or approximately three million people. 

The government is working together with the Islamic Chamber of Commerce, Industry and Agriculture to introduce Islamic finance in the country. 

Should the legislation allowing Islamic banking be passed, Uganda will join its African counterparts such as Nigeria and Kenya in offering Sharia compliant financial products on the continent.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Is the sh50 coin becoming irrelevant?
Charles Sengendo, a bodaboda rider at Nakawa in Kampala ordered for food from a local vendor at Nakawa market and consumed it. He turned to pay for the meal and pulled out the money that included some sh50 coins worth sh300....
The district agriculture officer Arua, Gertrude Badaru has encouraged farmers to use composite manure to boost soil fertility....
Mbale Main Market slaps ban on media
Mbale Main Market authorities have slapped a ban on journalists accusing them of reporting negatively on issues arising in the market....
Oil market pauses after April surge
OIL prices eased as the dollar strengthened slightly, tugging the market away from the prior day's new 2015 highs...
Dollar rebounds vs euro
THE dollar shook off its euro doldrums Friday, strengthening a bit despite some poor US economic data...
Leather SMEs launch new market strategy
Small and medium enterprises making leather products can now manufacture quality products that can attract market at home, East African Community and COMESA region following the launch of the strategy that will guide the operations of the sector....
Do you support KCCA'S move to return city communter buses?
Yes
No
Can't Say
follow us
subscribe to our news letter