Skip to main content

National Bank MD lauds Treasury for move on Shariah compliant bond

National Bank MD lauds Treasury for move on Shariah compliant bond



National Bank of Kenya has lauded a move by the Government of Kenya to tap into Shariah compliant financing instruments following the announcement of  plans to launch the first ever sukuk bond in the country.



Managing Director termed the announcement a “historic feat that will further catalyze economy” saying that both the Islamic population and the nascent Islamic finance industry in Kenya would tremendously benefit from the state action.



 Many investors from the Islamic faith in the country and around the world have not been able to participate in domestic borrowing efforts by Kenya’s Treasury and in such other bonds such as the Eurobond due to religious restrictions.


“A sizeable portion of Kenya and the world population profess the Islam faith and this move, therefore, further deepens their participation and financial inclusion."



The MD expects a spillover effect to benefit non-muslim  institutions and individuals  with the interest sharing concept that results to less systemic risks in Shariah compliant financing  already growing in popularity.


Government debut into Shariah Compliant financing will further attract development of technical capacity in the country resulting to growth of other instruments of Islamic finance.



The sukuk market has witnessed a debut issuance from governments that are not part of the Organization for Islamic Cooperation (OIC). This includes the United Kingdom, HongKong, Luxembourg and South Africa. Kenya could likely be the second non-OIC country in Africa to make a debut in the Sukuk bonds market.




Labels:

Comments

Post a Comment

Popular posts from this blog

Is Toyota the greatest Name Plate in East Africa?

MOTORING|  Why the Toyota Corolla is the greatest nameplate in Kenya Toyota Motors works with the Corolla makes the stuff for a perfect love story. Once she was discovered- it got better with age.  Last year, I  sat in a panel that judged and awarded the Toyota Corolla the car of the year 2009 (Kenya). The Publisher of the magazine that gave these awards however was space strained and limited our justification to a judgment of just 300 words: Obviously, not enough for a car with such a splendid legacy!   300 words sounded limiting especially after rigorous tests drive that reviewed handling, acceleration, braking, and stability on the road among other handling dynamics, which revealed  just how majestic the new Toyota Corolla was. We have Benda Kithaka, then Marketing Manager of Toyota East Africa to thank for this. The Corolla is no doubt Kenya’s greatest nameplate. This is how I will describe its legacy. As I grew up on the slopes of Mt. Kenya, this ...
1 comment
Read more

LEASING COMPANY CALLS FOR HYBRID CARS IN EAST AFRICA

Leasing company Vehicle and Equipment Leasing Limited (VAELL) has challenged motor leading dealers such as Toyota and GM East Africa to introduce and support hybrid cars in East Africa.  Paul Njeru, the company’s CEO say VAELL continues to turn down lease requests from customers especially development agencies for hybrid cars because of unavailability. The hybrid Toyota Prius and the new Chevrolet Voltz has been on high demand in developed markets.   Photo Courtesy: Tesla.com A Tesla Model charging. “There is unmet demand for low-emission cars . Whichever of the our top dealers moves fast will have the advantage in the market," he says. VAELL is among the oldest dealer-neutral leasing firms in the region. The company clientele included eight listed corporations. It has a market share of 30% of the development agencies. Kenya hosts the United Nations Environment Programme (UNEP), a factor that contributes to the pressure for more responsibility to the environment. "Nairobi ...
1 comment
Read more

Jaguar: The Cat's Story

Jaguar: the cat’s new story While other classy European cars like Range Rover, BMW and Mercedes Benz are global household names, the Jaguar has remained a species very exotic and vulnerable. Now, after messy living, the Jaguar makes a comeback in the new XJ 2010 By Kamau Ngunyi (   http://www.linkedin.com/pub/kamau-ngunyi/a/797/7a4) If cars could be equated to countries, the classy British car going by the name Jaguar would be Greece. Most people know Greece –for the old days schoolers, than for anything else in its recent history. Jaguar’s significance in motoring has been more felt in the past. While other classy European cars like Range Rover, BMW and Mercedes Benz were building into global household names, the Jag chose to remain a species very exotic and vulnerable. That cost it. Today, the Jag is remembered for a rich legacy between the 1930’s to 80’s. During this era, founder Sir William Lyons etched creative designs and built eye catching luxury saloons and spo...
3 comments
Read more