Khadi urges Muslims to form Saccos to benefit from Islamic Banking

The Wakiso District Khadi, Sheikh Erias Kigozi has advised the Muslim faithful to form savings and credit cooperative societies (Saccos) and enjoy the benefits of the Islamic banking system.

According to Sheikh Kigozi only Muslims in organised groups will be prioritised in accessing interest-free loans from any commercial bank which has Islamic banking products.

Salaam Bank, which already operates in Kenya, Somalia and Djibouti is the only bank which has so far been cleared by the Bank of Uganda to offer Islamic Banking products and is expected to start operations in Uganda next year.

“We thank the President of Uganda [Mr Museveni] for approving Islamic Banking in Uganda. Please position yourself well so that you can benefit from this banking system which conforms to our religious values,” Sheikh Kigozi said during a courtesy visit to Mungu-Mugagga Mosque in Namayumba Town Council, Wakiso District on Thursday.

Under Islamic Banking, the banks and their customers are partners and share in a predetermined and agreed ratio, the profits or losses from their joint venture.

Sheikh Kigozi’s advice followed a report by Namayumba Muslim leaders that Imams in the area were not financially doing well and many lacked cars to execute their duties.

Sheikh Abubakar Kyeyune, the head of Kakiri Muslim County told the district Khadi that many mosques have set up income-generating projects like liquid soap making, goat rearing and poultry farming. Still, they lack enough funds to expand the projects.

“We still have a challenge of funds to ensure that what we have set up grows to benefit the community. That is why we encourage Muslims to work together for development.’ He said 

Sheikh Kigozi revealed that the Uganda Muslim Supreme Council, the apex body of all Muslims in the country, plans to give vehicles to county sheikhs to ease their movement.

“Some country sheikhs like Nansana and Masulita have already received their vehicles. It is you who decides the class of the vehicle you want your sheikh to drive,” he said

 Mr Nelson Kalyango Kasenene, the mayor of Namayumba Town Council asked the Khadi to build the first-ever Muslim skills training institute in Kakiri Muslim county to enable Muslims to acquire hands-on skills.

“Some Good Samaritan has already offered free land where the institute will be built and we request that UMSC and its partners fund the project,” he said.

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