Muslim Teachers Excited over Islamic Banking

1376 Views Kampala, Uganda

In short
Kibedi made the plea during the ongoing 27 annual general meeting of the Uganda Muslim Teachers Association UMTA. The meeting at Hotel Africana in Kampala is running under the theme; Increasing our impact on Quality Education and Teachers Welfare.

Abdul-Majdu Kibedi, a senior education officer has asked government to expedite the operation process of Islamic banking to order to lessen the debt burden of teachers in Uganda.

Kibedi made the plea during the ongoing 27 annual general meeting of the Uganda Muslim Teachers' Association (UMTA). The meeting at Hotel Africana in Kampala is running under the theme; "Increasing our impact on Quality Education and Teacher's Welfare."

"Our Muslim teachers are chocking on debts from banks and yet Islamic banking can be a solution to this as it does not involve interest rates," Kibedi said.

He said that during a recent visit to Teso sub-region, teachers refused to have their allowances paid through their respective banks because the money would be immediately taken by money lenders.

Gender and Labour Development Minister Wilson Muruli Mukasa said the Islamic banking law has already been passed by Parliament and that what is remaining is for the banks to roll out the service to the people.

Parliament of Uganda recently embedded Islamic banking into the Financial Institutions Bill, 2015 by introducing Islamic Banking, a system of banking, which is consistent with Islamic Shari'ah (law) and guided by Islamic economics. The system is against the idea of interest on loans.

President Museveni has also over the years advocated for a model of banking where banks share the profit accrued with their clients instead of imposing interests on services.