Financial regulators seek national policy on Shariah-compliant finance
The proposed framework is expected to broaden access to financial services while supporting the sustainable growth of Shariah-compliant financial products in Kenya.
Financial sector regulators are working on a national policy framework for Shariah-compliant finance in a move aimed at expanding financial inclusion and providing ethical investment opportunities for Muslims and other investors seeking Shariah-compliant financial products.
The proposed framework is expected to broaden access to financial services while supporting the sustainable growth of Shariah-compliant financial products in Kenya.
Speaking during a two-day financial literacy programme in Wajir County on Monday, Capital Markets Authority (CMA) Chairman Ugas Sheikh Mohammed said the initiative is part of efforts to strengthen financial inclusion and address the investment needs of the Muslim community.
He said the CMA is collaborating with financial sector regulators, including the Central Bank of Kenya, to develop a national policy framework that will support the growth and regulation of Shariah-compliant financial products.
"The framework will enhance financial inclusion by providing ethical investment alternatives for Muslims and other investors seeking Shariah-compliant financial products," Ugas said.
According to the CMA chairman, the Authority is working closely with market intermediaries and industry practitioners to equip investors with practical knowledge on a wide range of investment opportunities, including stocks, money market funds, equities and Sukuk.
"Our mission was to engage the youth, professionals, entrepreneurs and the wider business community on the vast opportunities available within Kenya's capital markets, with a special focus on Shariah-compliant investment products that align with the region's financial values and aspirations," he said.
Ugas also lauded the government's efforts to promote inclusion in historically marginalised regions, noting that improved financial literacy would empower more Kenyans to participate in wealth creation and contribute to the country's economic development.
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He noted that many residents of northern Kenya traditionally invest in livestock, land and other physical assets, but stressed the need to diversify investment portfolios through regulated financial products.
Speaking at the event, Wajir County Executive Committee Member (CECM) for the Office of the Governor and Public Service Khalif Abdi welcomed the initiative, saying it would help residents embrace modern investment opportunities while improving financial literacy and management.
His counterpart in the Lands, Public Works, Housing and Urban Development docket, Ahmed Wardere, also commended the CMA for organising the training programme.
Wardere encouraged participants, particularly young people, to embrace entrepreneurship and investment as viable pathways to economic empowerment amid shrinking opportunities in formal employment.
The financial literacy programme seeks to equip youth, professionals and business owners with knowledge of the investment opportunities available in Kenya's capital markets. The initiative forms part of the CMA's strategy to deepen financial inclusion by exposing residents to regulated investment products beyond traditional forms of wealth creation.
Institutions that participated in the forum included the Nairobi Securities Exchange (NSE), ZD Trader Platform, Arvocap Asset Managers, Standard Investment Bank (SIB) and Absa Bank, which provided participants with information on Shariah-compliant investment products and services.
