By Tajeu Shadrack Nkapapa
President William Ruto has taken another step in fulfillment of his pledge to democratize the financial sector & ensure financial inclusion by launching Kenya’s first-ever Shariah-compliant ‘Linzi Sukuk’ bond on the Nairobi Securities Exchange’s Unquoted Securities Platform (USP).
“We are launching a product that brings Islamic financing, put together by the Nairobi Stock Exchange to facilitate Public housing.That is the essence of Public Private Partnership,” President Ruto said.
“We are using private funds to deliver public housing. It is the model that will leverage more resources beyond what government can do, that private money can facilitate public housing and home ownership,” he added.
The KSh 3 billion Linzi Sukuk bond, a 15-year Islamic security, is entirely funded through a Public-Private Partnership (PPP) with locally sourced funds.
This innovative financial instrument will support the construction of 3,069 affordable housing units, providing a significant boost to Kenya’s affordable housing agenda.
“The Ksh 3 billion bond will support the construction of 3,069 affordable housing units, aligning with the Kenya Kwanza manifesto, which pledged to leverage the pension industry to fund the affordable housing program,” Hussein Mohammed said on X.
During the launch event, President Ruto emphasized the importance of the Linzi Sukuk bond in achieving Kenya’s economic transformation goals.
“We are introducing new, diversified and innovative financial instruments at the Nairobi Securities Exchange that will help unlock broader investment opportunities and further our Bottom-Up Economic Transformation Agenda,” stated President Ruto.
“The landmark issuance of the Shariah-compliant Linzi Sukuk will not only promote financial inclusion, but it will also broaden market access, aligning with the global move towards more stable and robust economic growth,” President Ruto added.
The bond features a KSh 3 billion Islamic security with a 15-year maturity, structured entirely with locally sourced funds through a Public-Private Partnership (PPP).
According to the government plan, housing will be provided at an average cost of KSh 1.4 million, enabling homeownership with payments as low as KSh 7,700 monthly over 15 years.