Kenya eyes revamped legislation for sukuk this year, Posted by Meosha Eaton

* Central bank governor sees Islamic finance growth in Kenya
* Legislation for sukuk could be in place by year-end

By Shaheen Pasha

DUBAI, Feb 24 (Reuters) - Kenya may pass legislation to eliminate tax barriers to Islamic bond issuance by the end of the year with the government looking to launch Islamic treasury bills and bonds, known as sukuk, bankers said. Kenya, the largest economy in east Africa, has yet to tap international markets but is eyeing Islamic bonds as an option to raise funds from sharia-compliant investors, central bank Governor Njuguna Ndung'u said in an email. "We have received requests for a project to be identified so that finance can be raised through the issuance of a sukuk bond," Ndung'u said.

"Discussions are still ongoing with the Debt Management Office at the Treasury as to how this can be progressed." The central bank had previously issued an infrastructure bond with a sukuk portion in 2009. But the lack of accommodative tax legislation has been a hindrance to the development of the sukuk market. A source familiar with the central bank's discussions, said there is a push within the government to get appropriate legislation in place by the end of the year. "Once the regulatory framework is there we can promote a listing of sukuk on the local exchange," the source said. "Kenya wants to tap the international market but they are still determining whether to do it conventionally or Islamic. Once the legislation is in place, they'll consider a sukuk."

Africa has become a growth market for the Islamic finance industry with countries from Senegal to South Africa exploring Islamic banking and sukuk offerings. Kenya is keen to become a hub for Islamic finance in Africa with more Islamic operations expected to launch this year. "Globally there is positive sentiment towards emerging markets and particularly trade between Africa and the East is growing," said Rizwan Kanji, debt capital markets partner at King & Spalding in Dubai. "It would be fair to say that Africa is looking east." Kenya's relative political stability and strong growth prospects, especially given turmoil in North African states like Egypt, Tunisia and Libya, makes it an attractive investment spot.

By developing its Islamic finance industry, the nation is likely to attract further investment from the oil-rich Gulf countries MORE ISLAMIC BRANCHES With a population of 4 million Moslems, Kenya has already made strides in the industry, being the first country in eastern and central Africa to allow Islamic banking in 2007. There are currently two standalone Islamic banks in operation - First Community Bank and Gulf African Bank - that make up roughly 1 percent of the banking sector's market share, central bank governor Ndung'u said.

A handful of conventional banks also provide interest-free current accounts to compete with the fully-fledged Islamic banks. The industry will likely see more conventional banks opting for Islamic branches this year, said Gulf African Bank Chief Executive Najmul Hassan. But Islamic banking will not just target the Moslem community. "The Moslem population is relatively small, roughly about 15 percent," he said. "Islamic finance targets the mass population because the products and services are good for all Kenyans."

Hassan said there is significant growth potential in the Islamic insurance, or takaful, market. Takaful Insurance Africa, the first fully sharia-compliant insurance company in Kenya, was launched last month.

(Reporting by Shaheen Pasha; editing by Stephen Nisbet)

Egypt's Brotherhood calls for protests to continue, Posted by Meosha Eaton

February 11, 2011 1:00:22 PM

As reported by Reuters:

 

 

CAIRO, Feb 11 (Reuters) - The Muslim Brotherhood, Egypt's largest opposition group, urged Egyptians on Friday to stay on the streets to oust President Hosni Mubarak from power, calling the veteran ruler's latest speech a trick.

"Mubarak appeared before us with a stinging speech that proves that he is still in charge. He still says he will do this and do that but will delegate authority to his deputy. But it's just more deceptive words to stop the people's demands," the Islamist movement said in a statement.

Mubarak said in the speech he was giving Vice-President Omar Suleiman presidential powers but gave no details and said he intended to stay in office until elections in September.

Suleiman promised in a speech afterwards to carry out political and constitutional reforms that Mubarak had authorised, and urged protesters to return home.
"The two statements issued by Mubarak and his deputy are rejected by the people," said the Brotherhood.

"It is your fate to face an arrogant, corrupt regime that is betting on your patience and ability running out, so prove how patient and determined and insistent you are and take back your rights," the statement said, addressing the people.

Mubarak has long presented himself to the West as a bulwark against the officially banned Brotherhood, the oldest Islamist group in the Arab world.

But representatives of the movement attended talks about constitutional reform with vice-president Suleiman this week -- the first time they have been offered such a political role at the table.

The group's statement was issued before an army communique on Friday saying the military would guarantee that Mubarak's promised reforms were carried out.

(Reporting by Andrew Hammond, editing by Paul Taylor)

The Power of Social Media- Egyptian Unrest, by Meosha Eaton

Government has shut down all telecommunications access for the 4th day in a row and is still in the process of containing the violence and uprising.  The march today will draw all types of organizations and classes of people from all walks of life.  Freedom Square is where the demonstrators wanted to congregate, however, police intervened and escalated the uprising.  This uprising was orchestrated via Social Media and well educated students who are ready to stand against corruption, unemployment and the authoritarian government.

Media has been shut out with no access to this location so that there are no pictures taken at what could possibly happen during the demonstration.  In addition to Egypt's educated middle class, this movement has brought several heavy hitters such as Nobel Prize winner Mohammad Al Baredi and the most powerful Islamic brotherhood and activist together to stand against the common barriers that has plagued the Egyptian Nation.  More to come on this story.

Meosha Eaton