Parliament Okays Islamic Banking

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In short
Syda Bbumba, the Nakaseke North MP said Islamic banking in Uganda is not new since whenever government borrows money from Islamic banks, it does so under the Islamic financing model.

Parliament has approved the Financial Institutions (Amendment) Bill, 2015 okaying Islamic banking, and agent banking among others. 

 
The bill was approved on Wednesday evening following debate on a report tabled by Robert Kasule Sebunya, the chairperson of the Finance Committee on the Financial Institutions (Amendment) Bill, 2015.
 

In its report, the Committee recommended that the proposal to introduce Islamic banking and its products be adopted, subject to the establishment of a Central Shariah Advisory Board in the Central Bank.
 
 
Syda Bbumba, the Nakaseke North MP said Islamic banking in Uganda is not new since whenever government borrows money from Islamic banks, it does so under the Islamic financing model.
 
 
Bbumba noted that the introduction of Islamic banking will be a big relief for ordinary borrowers and Ugandan Muslims in particular.
 
 
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Rebecca Kadaga, the Speaker of parliament appealed to the legislators to embrace Islamic banking saying she learnt of its benefits from a meeting organised by Muslim Women's Association of Uganda.
 
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Milton Muwuma, the Kigulu South MP said it is the right time for parliament to help Muslims to access interest free loans. 


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Haji Idd Isabirye, the Bunya South MP argued that Islamic banking will not only help the Muslim community, but other Ugandans as well especially those in business.
 
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The bill also introduces agent banking, which refers to the delivery of limited scale banking and financial services outside conventional branches to the underserved population through approved agents.

 

About the author

Olive Nakatudde
Olive Nakatudde is a URN journalist based in Kampala. Nakatudde has been a URN staff member since 2013.

Nakatudde started out in journalism in 2009 with Dembe FM radio in Kampala. In 2012, Nakatudde joined Voice of Africa as a political reporter. She has been a photographer since her journalism school days at Makerere University.

Nakatudde is interested in good governance and public policy, which she reports on intensively from the Uganda Parliament. She is a keen follower of cultural affairs in Buganda Kingdom and covers the kingdom's Lukiiko (parliament). Nakatudde also reports on education and health.