Kenya to host Global Islamic Microfinance forum

NAIROBI: Kenya is to host an international forum on Islamic Microfinance from Tuesday as the country consolidates its status as the regional hub of the global Islamic Finance industry.

Delegates from at least 35 countries will converge in Nairobi to deliberate on the latest developments and trends in the growing multi-billion shillings industry including the policies and standards to nurture the sector.

The industry is based on advancing interest-free loans to financially-disadvantaged and vulnerable people or groups to help them create sustainable income-generating activities and lift themselves out of poverty.

The two-day forum has been organised by Dubai-based Al Huda Centre for Islamic Banking and Economics and will be in a Nairobi hotel.

The organisation, which operates in at least 25 countries, conducts research, advisory and capacity building activities to support growth of the industry.

“The forum seeks to enhance awareness about what Islamic microfinance has to offer in terms of social development and poverty alleviation,” said Mr. Muhammad Zubair Mughal, CEO of Al Huda CIBE.

He added: “We also seek to catalyse innovation in the Islamic microfinance industry through crowd funding and youth development programmes among others.”

The forum will be accompanied by Islamic microfinance awards to be given to the best performing personalities and institutions that are driving positive developments in the industry.

Award categories include Best Islamic Microfinance Bank, Best Islamic Microfinance Institution, Best Technology provider for Islamic Microfinance, Micro Takaful, Best Mobile Banking Product, Best Rural Finance Product among others.

The forum will be followed by a two-day workshop on 10^th and 11^th on how to develop, operate and sustain Islamic microfinance institutions.

The Islamic finance industry is growing rapidly globally and in Kenya where a number of institutions have been licensed to provide services in banking, insurance (takaful), bonds (sukuks) and microfinance.

Currently, Islamic microfinance forms one percent of the entire Islamic Finance industry but is projected to grow steadily in the near future.

The government has expressed interest in raising low-cost financing for its projects from the local and global markets through Islamic bonds (sukuks).