Kampala, Uganda | THE INDEPENDENT | The call to operationalize Islamic Banking dominated Eid al Fitr prayers at Kibuli Mosque on Tuesday.
Islamic banking is a system based on the Islamic economic guidelines in as far as the Sharia law is concerned.
Under this system, the banks make profits through fairness participation in that the borrower gives the bank a share in their profits as opposed to paying interest like it is the case in conventional banking.
Addressing hundreds of Muslim Congregation in Kibuli, Supreme Mufti Sheikh Siliman Kasule Ndirangwa said that there is need for the government to sensitize more Ugandans on the benefits of Islamic Financing.
He said that those against the system are doing it out of ignorance and there is a need to be educated about it.
The Imam, Sheikh Mahmood Kigoozi noted that the economy of the country is struggling at a time when the debt burden is over 40 trillion shillings. He said that if Islamic financing is operationalized, the economy will develop.
Princess Kassim Nakibinge notes that there is need to have discussions with Bank of Uganda and Ministry of Finance about the prospects of Islamic Banking.
“There is a section of the clergy who came up saying they didn’t understand Islamic banking. Those who don’t know it. You don’t need to go to universities, the best way is to have interactions with Bank of Uganda”, said Nakibinge.
Nakibinge assured the gathering that Islamic Banking will not affect the conventional banking sector.
Speaking at the same venue, the First Deputy Prime Minister Moses Ali assured people that they will continue pushing for Islamic banking.
At Old Kampala, the Mufti of Uganda, Sheikh Shaban Ramadhan Mubajje urged Muslims to embrace Islamic banking and utilize its services in the country.
He says that one of the key features of Islamic banking is that it enables one get an interest free loan from a financial institution that offers Islamic banking services. He reassured Christians and non-Muslims that Islamic Banking is meant to help and not to rob the poor.
The Islamic Banking is provided for under the Financial Institutions Regulations of 2018.
However, following its enactment, the church leaders including Stanley Ntagali of Church of Uganda petitioned President Yoweri Museveni opposing the inclusion of Sharia law in the regulations.
In their petition, they explained that the Introduction of Islamic Banking in the Financial Amendments Act was regrettable since the introduction of Sharia law would open the door to ultimate operationalisation of fully fledged sharia law not only in the finance sector but in all aspects of our national life.
They also alleged that the Banking opens doors for religious disharmony, tensions and conflicts and it would inevitably the country since the same law has reportedly been used by all Muslim Countries to destroy Christianity from all countries under Sharia law.