Kenya budget statement includes legislative amendment proposals for Islamic finance

In his ‎Budget Statement for the Fiscal Year 2017/2018, Mr. Henry K. Rotich, EGH Cabinet Secretary for The National Treasury of the Republic of Kenya, included details of proposed legislative amendments relating to Islamic finance.

In his ‎Budget Statement made on 30 March 2017 for the Fiscal Year 2017/2018 (01 July 2017 - 30 June 2018), Mr. Henry K Rotich, EGH Cabinet Secretary for The National Treasury of the Republic of Kenya, with the theme "Creating Jobs, Delivering a Better Life for All Kenyans‎", included the following statement relating to Islamic finance:

‎"Mr. Speaker, Islamic financing arrangement is becoming a major source of funding development expenditures worldwide. This financial arrangement is getting integrated within the global financial system and has the potential to boost prosperity and raise the standard of living of our people. Kenya intends to maximize its comparative advantage and position itself as a regional hub for Islamic finance products, in order to attract foreign direct investment. I, will therefore, propose legislative amendments to the Capital Markets Act, the Cooperatives Societies Act and Sacco Societies Act to facilitate for shariah compliant finance products. In addition, I intend to amend the Public Finance Management Act to provide for issuance of Sukuk bond (Islamic bond) as an alternative source of financing our development projects. I also intend to amend the tax statutes to provide for equivalent tax treatment of these new financial products with the conventional financial products. In addition, I shall shortly be issuing regulations to facilitate development of Takaful Retirement Benefits Schemes in Kenya."‎

The full text of the Budget Statement can be seen here.

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