The Capital Markets Authority (CMA) has approved the issuance of the country’s first-ever Sukuk Bond by Linzi Finco Trust. The Sukuk targets to raise KSh. 3 billion and proceeds from the bond will be used to develop 3,069 institutional housing units. The Sukuk will offer an internal return 11.13%.
Sukuk, also known as Islamic bonds, are financial instruments that comply with the Shari’ah principles.
The Housing demand in Kenya is estimated at 250,000 units annually. With a supply of only 50,000 new houses annually, there is an 80 per cent annual housing deficit. The Government plans to deliver 200,000 housing units annually through collaboration between the national government, counties and the private sector. To this end, there has been at least three projects launched in the past three months, with 7,800 units in the offing.
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Issuance Of Shariah Compliant Bond-Like Instruments In Kenya