Kenya Launches First Islamic Bond on Stock Exchange

Kenyan President William Ruto announced the listing of the country’s inaugural Islamic bond, the Linzi Sukuk, on the Nairobi Securities Exchange’s Unquoted Securities Platform, Xinhua reported yesterday.

This 3-billion-shilling (approximately 23 million U.S. dollars) Shariah-compliant bond is secured by residential leases and has a maturity of 15 years with an internal rate of return of 11.13 percent.

During the launch, Ruto emphasized Kenya’s commitment to creating a conducive business environment and ensuring investor protection through robust legal frameworks. He highlighted that the introduction of Sukuk would enhance financial inclusion and broaden market access, aligning with global economic growth trends.

Ruto also addressed corruption, promising legislative amendments to expedite corruption cases and ensure accountability. He stressed the importance of a transparent capital market for economic development, urging Kenyans to invest in the stock exchange, particularly in bonds and shares.