Amended laws to boost Islamic finance

Amendments to financial services regulation laws will be in place by June to facilitate speedy adoption of Sharia compliant products, the market watchdog said on Tuesday.

The changes will affect the Capital Markets Act, Cooperative Societies Act and Sacco Societies Act and have been put in the Finance Bill 2017.

“We are currently working with the National Treasury as well as Parliament to make sure that any necessary refinement coming from further stakeholders consultations can be included in the amendments already in Parliament to make sure that a holistic bundle of laws can be passed as soon as possible,” said CMA chief executive Paul Muthaura said Tuesday during the East Africa Islamic Economy Summit in Nairobi.

According to the National Assembly calendar, MPs are expected to hold their last sitting on June 15.

The Public Finance Management Act will also be amended to provide for the issuance of a Sukuk bond as an alternative way of financing development projects in the country.

Treasury secretary in his Budget speech signalled the intention to ride on the cheap Islamic finance products to close a budget deficit.

The global Islamic finance market was estimated at Sh206 trillion in 2016.

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