Bureaucracy and controversies surrounding delivery models have delayed the adoption of Islamic banking and bancassurance in Uganda, almost a year since amendments to the Financial Institutions Act of 2004 were passed.
Islamic banking that includes interest-free loans would be a relief to borrowers in a market burdened by expensive credit. Prime borrowing rates charged by commercial banks ranged between 21 and 25 per cent last year, as lenders responded to soft monetary actions pursued by the central bank in an effort to restore strong economic growth
