Emmanuel Tumusiime-Mutebile: The progress made on the introduction
of Islamic banking in Uganda
Speech by Prof Emmanuel Tumusiime-Mutebile, Governor of the Bank of Uganda, on the
occasion of Eid-El-Fitri celebrations at Bank of Uganda Western Gardens, Kampala,
17 September 2010.
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Your Eminence the Mufti of Uganda,
The Rt. Hon. Ali Kirunda Kivejinja, Third Deputy Prime Minister/Minister of Internal Affairs,
Hon Ministers,
Honorable Members of Parliament,
His Worship the Mayor of Kampala,
Chief Executives of Commercial Banks,
Bank of Uganda Senior Management,
Distinguished Guests, Ladies and Gentlemen,
Asalaam Aleikum,
Eid Mubarak, Eid Mubarak, Eid Mubarak!
It gives me great pleasure to welcome you to this auspicious occasion when we mark the
end of the Holy month of Ramadan and to celebrate Eid-El-Fitri.
Let me take this opportunity to congratulate our Muslim brothers and sisters for having been
steadfast in committing themselves to fulfilling one of the five pillars of Islam by fasting during
the Holy Month of Ramadan; I pray that Allah accepts it. I urge all the Muslims who observed
the fasting to maintain this noble act of worship. The virtues of fasting should be upheld
throughout your daily life both at work and elsewhere.
At the Bank of Uganda, we believe that God plays a role in everything we do in executing the
Bank's mandate "to fostering price stability and a sound financial system". That is why we
adopted the culture of starting all our meetings with a prayer led by staff from different
religions and denominations to seek God's guidance. We uphold the freedom of worship and
no staff is constrained because of religious affiliation or creed and endeavor to accord equal
opportunities to all. In this regard the Bank hosts the Christian Community to the Christmas
thanksgiving we host the Muslims to the Eid celebrations. Let me once again assure you that
the Bank is committed to hold this Eid-El-Fitri celebrations every year.
Allow me to appraise you on the progress made on the introduction of Islamic banking in
Uganda which a number of local and foreign banks have expressed interest.
Ladies and gentlemen, Islamic banking is a system of banking or banking activity which is
consistent with the principles of Islamic law (Shari'ah). An Islamic financial institution (IFI) is
therefore one whose statute, rules and procedures expressly state its commitment to the
principles of Islamic Shari'ah and to the banning of the receipt and payment of interest in any
of its operations.
As you are aware, the current regulatory regime does not permit financial institutions to
engage in Islamic banking. To close this gap, Bank of Uganda has proposed amendments to
the Financial Institutions Act, 2004 to permit the licensing of and transacting by financial
institutions in Islamic banking in Uganda. The proposed amendments to the law were
submitted to the Finance Minister for consideration by Cabinet and subsequently Parliament
for enactment. This amendment will bring Uganda in line with other EAC member countries
that have licensed Islamic banking and finance. It will increase the depth, breadth and range
of finance products bank customers can use to access banking services.
Let me conclude by wishing you once again happy celebrations. It is now my pleasure to
invite Hon Ali Kirunda Kivejinja to address the congregation.
God Bless you all.
Asalaam Aleikum,
Eid Mubarak, Eid Mubarak, Eid Mubarak