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
EADB to fund more projects in Uganda
The East African Development Bank (EADB) has received credit worth $40m (about sh104b) from the African Development Bank (AfDB) to finance infrastructure, manufacturing, tourism, agriculture, transport, education and health projects...
Quacks in construction industry a big threat to Vision 2040
Players in the construction industry have asked the Government to regulate it, saying increasing numbers of quacks will affect efforts to attain the Uganda Vision 2040....
NSSF to save Uganda Clays from collapse
It is now or never for Uganda Clays Limited (UCL). The National Social Security Fund (NSSF) has announced that it will convert a sh16.7b loan to UCL into equity in a bid to secure the company’s future....
UAE Exchange Uganda celebrates, brand turns 34 globally
UAE Exchange Uganda joins its global family in celebrating the 34th anniversary of the brand coming into existence...
Former health ministry accountant to go on trial over illicit enrichment
The Constitutional Court has ruled that the prosecution of former principal accountant, Ministry of Health, Nestor Machumbi Gasasira, should proceed in the Anti-Corruption Division of the High Court....
Martin Aliker is new NIC chief
Dr. Martin Aliker, the senior presidential adviser on special duties, has been appointed the acting chairman of the National Insurance Corporation, following the death of the chairman, Dr. Remi Olowude, last month....
Should diplomatic passports issued to ex-govt workers be with drawn?
Yes
No
Can't Say
follow us
subscribe to our news letter