The Nairobi Securities Exchange (NSE) has launched Linzi Sukuk, Kenya’s first Sharia-compliant bond, to facilitate public housing.....CLICK HERE TO READ THE FULL ARTICLE>>>
Speaking during the launch event at the Nairobi Securities Exchange, Ruto said that funds raised from the bonds would be used to deliver 3,069 housing units.
“I am also encouraged that the funds raised from this bond will facilitate the construction of 3,069 affordable housing units thereby generating thousands of jobs across the country expanding commerce in many aspects of trade aspects of supply traders and many other aspects that will bring this together,” Ruto said.
The president added that the structure of the Linsi Sukuk is aimed at providing housing at a cheaper cost, enabling Kenyans to buy homes for as little as KSh 7,000.
“The structure of Linzi Sukuk aimed at providing housing at an average of KSh 1.4 million, significantly less than the current average, enables Kenyans to own homes by paying as little as KSh 7,000 for 15 years,” Ruto added.
He noted that the Linzi Sukuk bond will bring Islamic financing into the public housing programme and highlighted it as the essence of public-private partnerships.
“We are using private funds to deliver public housing, it is the model that will leverage more resources beyond what the government can do,” he explained.
He further noted that the security forces will benefit from the housing units that will be constructed using the money raised from the Sukuk bond.
Ruto defended his administration’s decision to use public land for the affordable housing programme.
“Many people have asked me why I am using public land to deliver housing. I mean, what else was public land supposed to be used for? In many cases, if we don’t use public land to deliver public housing, it ends up in the hands of a few other people by other means. I am committed to ensuring that we create more homeowners in Kenya,” Ruto said.
The president said that by having housing products that are affordable to the majority of Kenyans, the mortgage industry can expand from 40,000 to between one and a half and two million mortgages.
NSE experienced a positive turnaround due to factors such as the partial advanced settlement of Kenya’s June 2024 Eurobond and the stabilisation of the shilling.
Notably, ABSA NewGold ETF has the most expensive shares at KSh 2,860, and Uchumi Supermarket has the cheapest at KSh 0.19…CONTINUE READING>>
