NAIROBI, April 20 Kenya will issue its debut
Islamic bond planned for the fiscal year starting in July under
existing laws as it pushes legal reforms aimed at boosting
Islamic finance, a senior government official said.
Henry Rotich, the finance minister, said last month the East
African nation planned to amend its laws to enable issuance of
the Shariah-compliant bond, part of a plan to mobilise local
funds and set up Nairobi as a regional hub for the sector.
Githu Muigai, the attorney general, who is the government's
chief legal adviser, told Reuters on Thursday the issuance could
go ahead, even if all planned legal reforms are not completed in
"We will continue with the bond within the institutions that
exist right now but we will transition into the new framework
sometime next year," Muigai told Reuters.
He said the proposed changes include the consolidation of
financial regulations, which are pending before parliament.
"This will then give us an opportunity to come back to
sector specific problems like deepening and broadening Islamic
banking and the various products that are on offer," he said.
Kenya has two Islamic banks, established a decade ago, and
several Islamic banking windows, offered by some commercial
(Writing by Duncan Miriri)