The government could soon tap development funds from the local and foreign Muslim investors once the Shariah-compliant Sukuk system is launched at the bourse.
Nairobi Securities Exchange (NSE) and Nasdaq Dubai have signed a Memorandum of Understanding to fast-track development of a Sukuk sector at the bourse.
NSE chief executive Geoffrey Odundo who returned from the emirates Friday said the move will see the Kenyan government, government-related entities and the private sector source development funds via the products.
“Our aim is to promote Islamic capital market products and solutions locally as well as exchange information and experiences relating to the markets in Dubai and Kenya,” he said.
Last year, President Uhuru Kenyatta assented to the amended Finance Act that recognised Sukuk products creating an avenue for the Muslim community to actively participate in bourse activities via products that are Sharia compliant.
Nasdaq Dubai chief executive Hamed Ali said NSE’s growing stature as a regional bourse could greatly benefit from the introduction of Sukuk products. It would also enable the Muslim community in the region enjoy benefits that accrue from investing at the bourse.
Nasdaq Dubai is one of the largest exchanges in the world for Sukuk, with listings valued at Sh50.8 trillion—mainly sourced from international and regional issuers including governments, multilateral institutions and private entities.