President Ruto Launches the First Shariah-Compliant Bond

President William Ruto has officially announced the listing of the country’s inaugural Islamic bond, known as the Linzi Sukuk, on the Nairobi Securities Exchange (NSE). 

This occasion was marked by a formal Linzi Sukuk Bell-Ringing Ceremony held at the NSE headquarters in Westlands, Nairobi.

A Milestone in Financial Innovation

During the ceremony, President Ruto emphasized the groundbreaking nature of this financial instrument, stating:

Addressing Challenges in Islamic Finance

While celebrating this achievement, President Ruto also acknowledged existing hurdles in the broader implementation of Islamic finance in Kenya. He highlighted a key issue:

To tackle this challenge, the President has directed the National Treasury and the Central Bank of Kenya to expedite the establishment of such a board. He further elaborated on his vision:

Linzi Sukuk: Bridging Finance and Social Development

The Linzi Sukuk is not just a financial instrument; it’s also a tool for social development. The bond aims to raise funds specifically for the construction of affordable housing units, addressing a critical need in Kenya’s urban areas. 

This aligns with the government’s broader agenda of providing accessible housing solutions to its citizens.

Linzi Finco Trust, the entity behind the Sukuk, plans to utilize the proceeds from this bond to finance the construction of these much-needed housing units.

Early Success and Market Response

The launch of the Linzi Sukuk has already shown promising results. According to Business Daily Africa, this pioneering Shariah-compliant bond successfully raised 3 billion Kenyan Shillings

This strong initial performance indicates significant investor confidence and interest in this new financial product, potentially paving the way for more Islamic financial instruments in Kenya’s future.