IFAAS is Assisting Kenya’s Government in Development of Islamic Finance
IFAAS has provided its expertise and comprehensive assistance to the Government of Kenya in devising its national budget. IFAAS has been appointed by the Government and is working with the law firm Simmons and Simmons for the progress of Islamic Finance in Kenya.
Kenya’s Government has announced its national budget that has a number of plans that are likely to strengthen Islamic Finance industry in the country. The 2017/2018 budget was launched on Friday and consists of various initiatives that are likely to give support to the infrastructure of years old Islamic banking sector of the country.
Changes have been witnessed to the Public Finance Management Act, which are designed by the Islamic Finance Project Management Office (PMO).
The framework of PMO has been structured by IFAAS, managing director of IFAAS, Farrukh Raza said, “The primary objective is to prepare the groundwork for a sovereign sukuk but also equally to attract corporate sukuk from the region.”
The changes made to the act would lead the way for a strong Islamic banking industry in the country. Amendments to stamp duty would make the products neutral to tax deduction.
Farrukh also added, “Exemptions to value added tax would allow returns from Islamic deposits to be eligible for deductions similar to interest-based products. This would apply to individuals, corporates and government entities.”
The new initiatives also include Islamic pension scheme, amendment to cooperatives and saving societies.