Nairobi Stock Exchange chairman Kiprono Kittony (second left), President William Ruto, Prime cabinet secretary Musali Mudavadi with Treasury principal secretary Chris Kiptoo and other officials at the NSE on July 31, 2024.....CLICK HERE TO READ THE FULL ARTICLE>>>
President William Ruto has directed the financial regulators to work with the Treasury and Islamic finance stakeholders to develop a regulatory framework that can support the growth of Islamic finance in the country.
Islamic finance refers to a financial system that operates in accordance with the principles of Islamic law (Shariah)
Islamic finance, Ruto said, has the potential to unlock investment resources and boost economic growth.
Speaking Wednesday at the Nairobi Stock Exchange (NSE) during the listing of Linzi FinCo Trust, Ruto said as a government, they are committed to having more private sector listings in the stock market.
“As we look forward to further integrating public agencies into the securities market through privatisation…we remain dedicated to our goals of job creation and economic development, crucial for realising the Sustainable Development Goals and improving the overall quality of life,” he said.
Ruto at the same time pointed out that a flexible regulatory framework to support Small and Medium Enterprises (SMEs) to raise funds through the capital markets is in place.
He disclosed that NSE through the Unquoted Securities Platform now has an SME capital raising platform.
Linzi FinCo Trust (Linzi Sukuk) becomes the first Shariah-compliant financial product to the Kenyan exchange.
It has been listed on the Unquoted Securities Platform (USP) of the NSE.
Its structure is aimed at providing housing at an average cost of Sh1.4 million which is significantly less than the current average.
It enables Kenyans to own homes by paying as little as Sh7,700 monthly over 15 years.
“This initiative not only makes homeownership more accessible but also represents a scalable model for investment in our affordable housing programme, attracting long-term investors, including local pension funds,” Ruto said.
The entry of Sukuk, Ruto added, aligns with the global move towards more stable and robust economic growth, unlocking Islamic financial assets currently valued at approximately USD 5 trillion…CONTINUE READING>>
