President Museveni Launches Islamic Banking

President Yoweri Kaguta Museveni has launched Salaam Bank, Uganda's first ever licensed Islamic Banking institution.Islamic banking is a form of banking based on Islamic principles. Basically, in Islamic banking it is not allowed to pay and receive interest but rather it is based on profit sharing.

Islamic banks focus on generating returns on investments through investment tools that are “Sharia” compliant.The President launched the bank  during Ramathan dua prayers organized by the Office of the National Chairman-NRM at Kololo Ceremonial Grounds.

Speaking during the event, President Museveni wished the Muslims a fruitful Ramathan and prayed that God protects them. He also reiterated his call to believers to make sure that they take part in income-generating activities to improve their livelihoods.

He however noted that all those avenues need capital that is why the government has been coming up with several interventions like Entandikwa, NAADS, Operation Wealth Creation, Emyooga and Parish Development Model (PDM) to enable Ugandans get the necessary start-up capital.

President Museveni further said as the NRM, they don't believe in discrimination, and they serve all Ugandans equally irrespective of their religions or tribes. In September last year, Bank of Uganda granted its first Islamic banking license to Salaam Bank Uganda Ltd, a subsidiary of a Djibouti-based bank after Parliament passed legislation to authorize Islamic banking, which President Museveni signed into law in August 2023.

The event was also attended by Salaam Bank officials, Ugandan government officials, religious leaders, among others.