Uganda's Ministers approve Islamic Banking

May 14, 2014

Uganda's cabinet has approved a bill authorising Islamic banking in Uganda.

Uganda's cabinet has approved a bill authorising Islamic banking in Uganda. If approved by
parliament, local and foreign commercial banks will be able to offer Sharia compliant financial services on the Ugandan market.

Maria Kiwanuka, the Finance Minister, said: "The cabinet has agreed to allow this type of banking. It was forwarded to the parliament committee responsible and if MPs pass the bill into law, then we shall roll it
out."

She however highlighted some challenges due to a lack of trained and skilled personnel to kick start Islamic banking, East African Business Week reports.

The 2004 national census shows that Uganda has a Muslim population of nearly four million, out of a total population of 33 million.

Only 8.3 per cent of the population owns a bank account, according to figures from the Central
Bank published by the Daily Monitor.ADNFCR-2976-ID-801720034-ADNFCR