Salaam Bank Uganda is the first to offer Islamic banking in Uganda, following the new law.
KAMPALA, UGANDA | NOW THEN DIGITAL — Salaam Bank is the first in Uganda to secure an Islamic Banking License from the Bank of Uganda. It’s a subsidiary of Salaam African Bank of Djibouti and expanded into Uganda following its growth in Asia and Kenya.
The license follows President Yoweri Museveni’s signing of the Financial Institutions (Amendment) Act 2023, enabling Islamic Banking in Uganda.
Islamic Banking adheres to principles prohibiting interest on loans, opting for profit-sharing. It reduces repayment risks for enterprises and provides expert input.
Michael Atingi-Ego, Deputy Governor of the Bank of Uganda, affirmed central bank support for Salaam Bank in this endeavor, acknowledging Islamic banking’s potential contribution to Uganda’s financial sector development.
“The BoU is committed to providing oversight and support to Salaam Bank Limited as it embarks on this new journey. Islamic banking has the potential to make a significant contribution to the development of Uganda’s financial sector.” – Michael Atingi-Ego said.
“Islamic banking has the potential to make a significant contribution to the development of Uganda’s financial sector,” said Dr Atingi-Ego.
The issuance of the Islamic Banking licence follows H.E @KagutaMuseveni's signing of the Financial Institutions (Amendment) Act 2023 last month, that paved way for the introduction of Islamic Banking in Uganda.#IslamicBankingUG
— Bank of Uganda (@BOU_Official) September 8, 2023
Salaam Bank management highlighted that these licenses enable Ugandans to access 100% Islamic financial products, enhancing the Ugandan banking market.