Kenya can easily raise money through Sukuk bonds due to its good reputation in the international financial markets, analysts have said.
Saad Rahman, the deputy chief executive officer with Salaam Investment Bank Kenya (SIBK), said given that Kenya has issued several Eurobonds all that were oversubscribed, Kenya’s Sukuk bonds would perform exceptionally well if they are issued. Sukuk is the Arabic name for financial certificates.
“Kenya should tap into Sukuk bonds in raising money from international markets. This can be done with the help of the National Treasury,” Rahman said Wednesday during a webinar on Islamic financial capital markets organized by Kenya’s Capital Markets Authority (CMA) and the Dubai-based Islamic Financial Services Board (IFSB).
Wycliffe Shamiah, the chief executive of CMA, said Kenya is ripe for offering Sukuk bonds as it is among countries in the continent with considerable potential of becoming regional hubs of Islamic finance.
This is because of factors such as the country’s geographical location, sizeable Muslim population and infrastructure funding needs, which have created an ideal environment for the funding mechanism.
Peter Casey, a member of IFSB secretariat and a capital markets expert, said global Islamic bond markets picked up faster after the COVID-19 pandemic due to the way they are structured, with the equity indices of most markets doing well. Enditem