President William Ruto has announced the listing of Kenya’s first Islamic bond, the Linzi Sukuk, at the Nairobi Securities Exchange (NSE). This historic event was marked by the Linzi Sukuk Bell-Ringing Ceremony held at the NSE in Westlands, Nairobi. During the ceremony, Ruto highlighted the significance of this addition to Kenya’s financial market, noting that it joins a portfolio of innovative financial instruments.
“With today’s listing, the Linzi Sukuk joins a portfolio of innovative financial instruments on the NSE, including the Elam Fahari real estate investment trust,” President Ruto stated.
Ruto acknowledged the current lack of a centralized Sharia governance board as a barrier to the broader implementation of Islamic finance in Kenya. He has directed the National Treasury and the Central Bank of Kenya to expedite the establishment of this governance structure.
“However, the absence of a centralized Sharia governance board remains a significant barrier to the broader admission of Islamic finance,” Ruto said. “To address this, I ask our financial regulators to collaborate with the National Treasury and Islamic finance stakeholders to develop a robust technology framework that will support the growth of Islamic finance in Kenya, which has tremendous potential to unlock our investment resources and boost our economy.”
The Linzi Sukuk is a pioneering financial instrument in Kenya, aiming to attract investors interested in Sharia-compliant investment opportunities. This bond represents a step towards diversifying Kenya’s financial products and catering to the growing demand for Islamic finance in the region.
The issuance of the Linzi Sukuk aims to raise funds for developing affordable housing units, addressing the critical need for housing in Kenya. According to a report from Estate Intel, Linzi Finco Trust, the entity behind the Sukuk, plans to use the proceeds from this bond to finance the construction of these housing units.
This initiative aligns with the government’s broader agenda to provide affordable housing solutions to its citizens. The launch of the Linzi Sukuk has already shown promising results. Business Daily Africa reported that Kenya’s first Shariah-compliant bond raised Ksh3 billion, demonstrating strong investor confidence and interest in this new financial product.
Credit: @WilliamsRuto, X
