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Parliamentary Budget Office backs bid to enact Sharia banking laws

Islamic financial institutions are only recognized through regulations under the Banking Act. [iStockphoto]

The Parliamentary Budget Office (PBO) has supported the proposal to amend the Central Bank of Kenya Act to allow implementation of Sharia banking principles within Islamic banks.

The office that advises members of parliament on budget planning yesterday released a Financial and Economic impact report on the proposed Central Bank (Amendment) Bill 2023, saying that its passage by the August House and subsequent implementation would attract foreign direct investment and develop overseas partnerships.

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