Islamic banking brings hope to Luweero’s economy

By Jamil Ssekajja

The call to Ugandans to embrace Islamic banking is gaining momentum, with more areas welcoming the sharia-based interest – free system.
During a sensitization seminar conducted by the Microfinance Support Center (MSC) at Kasana UMEA Primary School grounds, in Luwero district, Sheikh Ramadhan Mulindwa, the District Kadhi, commended the government for supporting Islamic Banking initiatives.

He noted that government programs, such as Emyooga and the Parish Development Model, were inaccessible to many Muslims due to their reliance on interest-based loans.
“This initiative bridges the gap, providing financial inclusion for all Ugandans,” Sheikh Mulindwa said.
Islamic Banking offers a sustainable and ethical alternative to conventional financial systems. By adhering to principles that prohibit interest, the system fosters economic growth, reduces poverty, and promotes fairness among beneficiaries.

Ann Nabukenya, Luweero Assistant Resident District Commissioner, called on residents of Greater Luweero and Ugandans at large to embrace the banking system. Nabukenya highlighted the transformative potential of this interest-free financial system in reducing poverty at the household level.

According to Nabukenya, Islamic Banking eliminates the burdens of interest-bearing loans—commonly referred to as riba—which often leave borrowers vulnerable to exploitation by loan sharks.

“This approach ensures fairness and protects people from oppressive financial systems, making it a valuable tool for economic empowerment,” Nabukenya noted.

Nabukenya emphasized that Islamic Banking is open to all, regardless of religious affiliation, and urged residents to embrace the system for their financial well-being.

Buwembo Abdul Rahman, an expert in Islamic Banking, explained its core principles during the seminar.
“Islamic Banking provides solutions that align with Islamic teachings while addressing the financial needs of everyone,” he stated.

Further elaborating on the implementation, Baker Nambaale, a Senior Islamic Banking Investment Officer at the Micro Finance Support Centre (MSC), explained that loans are extended to registered groups, SACCOS, or cooperatives at the sub-county and district levels.

“Borrowers repay only the principal amount, making it a truly interest-free service,” Nambaale said.
He also outlined other Islamic Banking products, including asset financing and value addition support, tailored to foster economic development.