Islamic Banking way to go

Top business leaders are asking members of parliament to amend the 2004 financial institutions act to incorporate Islamic banking.

Last year cabinet approved the system following concerns from members of parliament over high lending rates offered by commercial banks.

Now the Uganda National Chamber of Commerce is questioning the delays.

Speaking at the seminar on introduction of Islamic banking and finance in Uganda, the president of the chamber of commerce Olive Kigongo said this system will make loans affordable.

Islamic banking is a banking system that does not attract interests on a loan but rather based on trust, unlike the conventional type of banking