Progress on Islamic Banking in Uganda

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Iam not very sure about Bank Of Uganda(BOU)’s opposition to Islamic banking.As a matter of fact i know that the bank has invested substantial resources in training its senior staff in preparation for Islamic banking so that they can regulate it effectively.Some of these trainings have been in Uganda others outside in countries where Islamic banking is practiced.Consequent to that preparation and because of the uniqueness of some of the products sold by Islamic banking a specific law is required.

To my knowledge this law is before cabinet. BOU already has a pending application by NBC to open up a window for Islamic banking.It is also important to know that it is possible to sell some of the Islamic products under the current legal regime once there is a sound contractual arrangement between the bank and the customer complying with Islamic and Ugandan law .

BOU has however asked that such arrangements be delayed until the law is passed. I have had previous meetings with the Governor on this issue and to the contrary he is very open and supportive especially because of the advantages derived from Islamic banking.

yours faithfully,
Salim Makeera
MANAGING PARTNER

MAKEERA & CO.ADVOCATES

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