Government Delays in Establishing a Shariah Advisory Council Create Headwinds for Uganda’s Islamic Banking Industry

Following the passing of a law in 2016 facilitating Shariah-compliant banking operations in Uganda, Islamic leaders across the country have expressed their frustration at the lack of initiative taken by the Bank of Uganda (BoU) to promote the development of the country’s Islamic banking industry.

As reported by the local press, the Daily Monitor, the BoU has yet not established the Central Shariah Advisory Council, whose responsibility will be to oversee the regulation and supervision of Islamic banking in the country. According to a former Deputy Governor, Louis Kasekende, at the BoU, this was a key step required prior to the issuance of licences to financial institutions.

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