Kenya lists 1st Islamic bonds worth $23M to support affordable housing agenda

By Andrew Wasike

NAIROBI, Kenya (AA) - Kenya on Wednesday listed the nation's first Islamic bonds worth $23 million.

The listing was done at the Nairobi Securities Exchange (NSE), where President William Ruto inaugurated Sukuk, or Islamic, bonds by Linzi Finco Trust Islamic.

The innovative financial product aims to support Ruto's affordable housing agenda by providing alternative funding options to conventional methods.

At the launch ceremony, Ruto noted that the importance of the Shariah-compliant bonds is promoting financial inclusion and expanding market access.

"We are introducing new, diversified and innovative financial instruments at the Nairobi Securities Exchange that will help unlock broader investment opportunities and further our Bottom-Up Economic Transformation Agenda," he said.

"The landmark issuance of the Shariah-compliant Linzi Sukuk will not only promote financial inclusion, but it will also broaden market access, aligning with the global move towards more stable and robust economic growth."

Ruto said the Kenyan government aims to tap into the growing pool of Islamic finance, providing more resources for critical infrastructure projects, particularly in the housing sector.

During the launch, NSE Chief Executive Officer Frank Mwiti said the new bonds will open new Shariah-compliant markets for Kenya, bringing in more investors.

Ruto's administration has been actively pursuing various projects to address the housing shortage in Kenya.

The affordable housing initiative is a key component of his Bottom-Up Economic Transformation Agenda, which seeks to improve living conditions for all Kenyans by making home ownership more accessible.

Recent projects under this initiative include the construction of thousands of affordable housing units across the country, aiming to meet the high demand for affordable homes.

According to a report from African Business and Fitch Ratings, Africa's three largest economies -- Nigeria, South Africa and Egypt – raised a total of $3.045 billion through Sukuk issuances since last year.