Government should expedite the implementation of Islamic banking as provided for in the Financial Institutions (Amendment) Act, 2016, the Secretary-General of the Uganda Muslim Supreme Council Alhajji, Ramadhan Mugalu has said.
Mugalu was Tuesday speaking at the Gaddafi National Mosque in Kampala, during the scientific Eid Al- Adhuha prayers, Mugalu decried the delayed implementation of Islamic banking in the country. He noted that the law also provides for the establishment of the Central Sharia Advisory Board in the Central Bank.
Islamic banking operates in line with Sharia law that prohibits the charging of interest and speculation. Mugalu says that if implemented, Islamic Banking would help several people during the current difficulties in the economy caused by the Covid-19 pandemic. He says that the Muslim Community has the necessary experts to sit on the Council to govern Islamic banking but the Bank of Uganda – BoU is still dragging its feet.
Early this year, Parliament tasked the Finance Minister Matia Kasaija to explain the delayed implementation of Islamic banking. In his response, Kasaija said that they were also concerned but the law requires that there must be a council that will govern Islamic banking.
Adding that they have been trying to look for qualified people to sit on the Council but Uganda doesn’t have that kind of personnel.
However, this was protested by the legislators led by former Speaker Rebecca Kadaga who said that there are qualified people who are available and very conversant with Islamic banking as well as Sharia.