STATE OF ISLAMIC SHARIA COMPLIANT ASSET MANAGEMENT IN KENYA
Although the first Islamic Sharia Compliant Fund was launched on Wednesday, 7th March 2012, by FCB Capital Ltd (Kenya’s First Investment Bank) – First Ethical Opportunities Fund https://www.firstcommunitybank.co.ke/about-us/fcb-capital to provide sharia conscious Muslim’s and Ethically conscious Kenyan’s a collective investment vehicle to invest in Regional and Kenyan Securities. Its has had only the Iman Fund by Genghis Capital http://www.genghis-capital.com/index.php/services/unit-trust-funds to join the Islamic Sharia Compliant Collective Investment vehicle space.
The Islamic Sharia Compliant Retirement Benefits scheme space has one player, authorised by the Retirement Benefits Authority, on Wednesday 10th April 2015 https://www.businessdailyafrica.com/corporate/Regulator-licenses-first-Sharia-compliant-pension-scheme/539550-1745060-10m3rkc/index.html , The Takaful Retirement scheme – an Umbrella Scheme http://www.takafulafrica.com/images/downloads/Takaful-Umbrella-Fund-Brochure.pdf
First Ethical Opportunities Fund
This is an open ended fund whose initial subscription was 50,000 units of Kshs 2,000 (1 USD is approximately Kshs 103). It is redeemable at its NAV.
Takaful Retirement Benefit Scheme
The Takaful of Africa Umbrella retirement benefit scheme is a defined contribution scheme target at the over 2 million Muslims of working age in Kenya. It remains the only one licenced by the Retirement Benefits Authority in Kenya
In the asset management (collective investment vehicles) sphere, greenfield opportunities exist in the following area’s
• Islamic Venture Capital Funds – targeted at SME’s both Start-up and Growth
• Islamic Real Estate Investment Funds – REITS for both Commercial and Residential
• Islamic Private Equity Funds
• Islamic Sharia Compliant Alternative Investment funds
• Islamic Home/ Office Finance Funds
• Islamic Sukuk Fund
Conclusion: Kenya is at the teething stage of having an Islamic Asset Management industry, and intermediaries have a duty to create new products and educate the public on the Sharia Compliant investing opportunities. I remain positive the next decade in line with the governments financial sector deeping program which is inclusive to all its people, the Islamic Asset Management industry has an awesome future.
Mohamed Ebrahim is CEO and director of Ace Financial Advisory. He can be contacted at firstname.lastname@example.org Website https://acefinancialadvisory.com/
This article was first published in Islamic Finance news Volume 15 Issue 3 dated the 17th January 2018.