Ugandan President launches first-ever Islamic Banking Institution in Kampala

Kampala(Mogadishu24)-Ugandan President,Yoweri K. Museveni on Wednesday launched Salaam Bank, Uganda’s first-ever licensed Islamic Banking institution in Kampala, a subsidiary of a Djibouti-based Salaam Group.

“Today, I joined my Bazukulu Muslims at Kololo for dua prayers and also launched Salaam Bank, Uganda’s first-ever licensed Islamic Banking institution. My message was for them to engage in income generating activities to fight poverty and improve their livelihoods through the four sectors”, Yoweri said.

The President said at the launching event that his country his big market with a population of 48 million, underscoring that the Islamic banking had the potential to make a significant contribution to the development of Uganda’s financial sector by bringing more Muslims to the money economy.

“I welcome Salaam Bank. Uganda is a big market with a population of 48 million, and in the next 27 years, the population will be 106 million. Therefore, Islamic banking has the potential to make a significant contribution to the development of Uganda’s financial sector by bringing more Muslims to the money economy”, he said.

The President further pledged that he will engage with Muslim scholars and leaders in handling certain issues regarding to Islamic financial systems like Riba(Interest).

“On the issue of Riba, I am going to sit with the Sheikhs and other Muslim leaders. If their conviction is that the Parish Development Model (PDM) is against Islamic teachings then we can direct their money through Salaam Bank”, he concluded.

Ugandans welcomed the President’s decision to open such Islamic Banking in the country, thanking him for uniting religious faiths.

“The launch of Salaam Bank, Uganda’s first licensed Islamic Banking institution, is a significant step towards financial inclusion and economic empowerment within the Muslim community”, Amanda Bae said on X.

“Congratulations to the Muslim community… Banks play a complementary role to the government’s efforts to increase financial inclusion as well as improving household incomes”, Kizito Alysha said.

The Salaam Bank in Uganda now is subsidiary of a Djibouti-based Salaam Group and obtained its license in September last year after Uganda’s Parliament passed legislation to authorize the Islamic banking, which President, Yoweri K. Museveni signed it into law later.