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
Uganda losing sh497 trillion in unprocessed exports
ACCORDING to trade minister Amelia Kyambadde, Uganda lost as much as $128.45m (sh373b) in 2012 in exporting goods that were not processed, packaged or branded to the UK....
Tonnes of immature fish impounded in Amolatar
A combined force of the Police and regional fisheries law enforcers mounted a surprise night operation in Amolatar district, impounding tonnes of immature smoked fish...
Vision Mobile products and services
Vision Mobile, a Small Business Unit of Vision Group provides state of the art based products, services and applications with a mission to offer the most advanced Value Add Services in Uganda....
Ugandans cautioned of fake, dirty soft drinks on market
As the Uganda National Bureau of standards (UNBS) steps up efforts to increase compliance to standards, a section of manufactures of juice are still not conforming to the required procedures and standards....
UTB to promote domestic tourism through discounted tours
In its commitment to promote domestic tourism with a bang this year, the Uganda Tourism Board in partnership with the Uganda Safari Guides Association and Uganda Wildlife Authority has started providing highly discounted domestic adventures around the country...
Digital migration: Pay TV service providers rush to cash in as deadline looms
As the June 30, 2015 global digital migration deadlines nears, pay television services providers are rushing to cash in from the members of the public who would want to do last minute purchases....
Is KCCA doing enough to curb poor hygeine?
Yes
No
Can't Say
follow us
subscribe to our news letter