The

Friday Bulletin
The Muslim News Update
Jammada al Awwal 20, 1427/June 23, 2006

Issue no. 165

State commended on Islamic banking

KCB to unveil Islamic
products
In what is turning out to be a growing interest
in financial products targeting Muslims, the
countrys largest financial institution Kenya
Commercial Bank (KCB) is in the process of
unveiling a range of Islamic products.
According to Alice Macharia, the banks senior
manager-marketing, Muslim lawyers and
scholars have been consulted during the
process of formulating the scheme. She said
the bank has even incorporated scholars from
as far as Saudi Arabia.
A Sharia advisory council was also set up to
ensure that the products would be in conformity
with Islamic teachings, said Macharia. The
Chief Kadhi Sheikh Hammad Kassim was
involved in the process.
Macharia was tight lipped about the names of
scholars sitting on the advisory council only
saying the Chief Kadhi had not be incorporated
as a member of the council.
Speaking to The Friday Bulletin Sheikh
Hammad said that he together with other
scholars had participated in one of the
workshops called by the bank. He said
recommendations were put forward to KCB to
address several issues before the concept
was given a go-ahead. I am not aware if the
recommendations were acted upon, he said
stressing that that was the only forum which
he attended.
Sources have indicated that the launch will be
held on July 17.
The Majlis Ulamah-Kenya, the countrys
scholarly body said KCB is yet to seek their
views on the matter.
Since last year, the financial sector has
witnessed a marked growth in Islamic
products. It started off with Barclays Bank when
late last year it launched the interest free La
Riba account for its Muslim clientele. This was
followed with an announcement that a fully
fledged Islamic Bank was due to open its doors
to the public later in the year.
Last month, Corporate Insurance Company
launched a Hajj insurance package which was
however, swiftly rejected by Muslim scholars
on the grounds that it did not conform to Islamic
financial regulations.
Last week in a move expected to further spiral
the growth of the sector, Finance minister Amos
Kimunya announced that interest free bankingthe basis of Islamic Bank will now be legalized
in the country.

The governments move to put in place legislation to allow the system of Islamic
banking in the country has been applauded by the countrys body of Muslims
scholars.
Finance minister Amos Kimunya made the revelations to legislate interest-free
banking in the country during his presentation of the Budget last week. His
announcement removed the main obstacle to the establishment of fully-fledged
Islamic banking institutions, the first of which is expected to open its doors during
the course of the year.
The chairman of Majlis Ulamaa Kenya Sheikh Khalfan Khamis welcomed the
move which he said will fulfill the aspirations of Muslims in the country. The
Muslim fraternity would like to commend the government of Kenya, the Ministry of
Finance and the Central Bank of Kenya for putting legal framework for Islamic
Banking, said a statement from the chairman.
He, however, stressed that Islamic banking was fundamentally different from
conventional banking and said that financial institutions intending to provide Islamic
banking should institute a scholarly board to provide guidance.
The Majlis Ulamaa Kenya assures you that, you will get our support if you follow
Islamic banking principles, he said.
A group of local and foreign investors in the past few years lobbied the government
to assent to the system to be introduced in Kenya. To have them to assent to the
system, officials of the Central Bank of Kenya and from the ministry of Finance
were taken to the United Kingdom where they had an on spot experience with the
operation of the Financial Service Authority (FSA), the UK equivalent of the CBK
which had licensed a number of Islamic banks in Britain. The officials also visited
the United Arab Emirates where the majority of banks have transformed from
conventional banks to the Islamic banking system.
In December, the concept of Islamic banking in the country was given a nod by
Central Bank but a legal enactment was needed before the idea could be
conceptualized. This was alhamdulillah finally achieved by Kimunyas
announcement.
Started just over thirty years ago, the concept of Islamic banking has seen
tremendous growth with major international banking institutions like HSBC,
CitiBank and Standard Chartered embracing the system in all continents. To adhere
to Islamic rules, which forbid dealing in interest transaction, the banks run separate
establishments in Islamic banking.

Maragua Muslim school crisis to be solved

More than a week after students of Maragua Muslim Secondary School went on
strike, the school administration has pledged to address the concerns of the
students in avoiding a repeat situation.
On Monday, the school board met parents in a meeting aimed at finding a lasting
solution to the problems which threatened to affect learning at the school.
The chairperson of the board, councilor Jamillah Omar acknowledged that some
of the students complains were justified and asserted that measures will be put
in place to address their concerns.
The students went on strike on June 15 accusing the school administration of
disregarding their grievances. Top on the list of their complaints was security at
the premises which they maintained was not being given the attention it deserved.
The girls said they had drawn the attention of the school administration about
men scaling the school perimeter wall but no action was taken.
The students who talked to The Friday Bulletin complained that they do not have
a matron whom they can turn to for their needs. When you have a problem, you
just keep it to yourself, said a student who spoke on condition of anonymity.
The girls also took exception about the quality and quantity of the food which was
served at the school.
The school principle Mashaka Omar was also accused of not supporting Islamic
activities at the school.
Continued on Page 4

This Newsletter contains some of Allahs names. Please do not throw in the trash. Either keep,circulate or shred.

A cautious welcome to Islamic Banking

Muslims in the country will comfortably sit back knowing that
their money is safely being kept and circulated under norms
provided for by their religion. We have witnessed businessmen
losing all their entire savings stashed in homes and business
establishments after fire outbreaks.
Though Muslims will be the main beneficiaries as they are
forbidden to engage in interest transactions, nonetheless those
who do not profess the Islamic faith will also enjoy the myriads
of advantages which come with the system.
Of recent we have seen growing interest being generated
with the launch of products being aimed at Muslim
consumers. While we commend this move, we wish to
clearly state that before such moves are undertaken, the
sensitivity of Muslim beliefs should be taken into consideration.
Reputable Muslim scholars well versed with the subject in
question should be consulted to ensure that all the operations
conform to Islamic teachings.
Only last month, Corporate Insurance Company launched an
insurance policy intended for Muslims going for Hajj which went
against the spirit of Islam. We do not want to see a repeat of this
scenario.
This attitude to take advantage of our religion for egoistic interest
will not be accepted. Any product being unveiled touching on the
beliefs of Muslims has to be sanctioned by Muslim scholars.

The legalization of Islamic Banking activities in the country is

perhaps the biggest achievement on the part of the government
to the Muslim community since its coming to power more than
three years ago.
For all these years, Muslims have been used to a systematic
campaign of harassment and discrimination which has been
clearly aimed against the community especially with regard to
the so-called war on terror. The threat against the Kadhis courts
has been another feature which has contributed to bad
blood between the community and the present
government.
The Finance ministers announcement in the budget
speech to sanction Islamic banking in the country is the
first time that the government has effectively responded to the
concerns of the community. In the past, matters raised by
Muslims have ended up to be mere lip service with no action
being followed up on the ground.
We hope that this will be the first of several steps by the
government to win back the hearts and minds of Muslims who
have at most been disillusioned by what many see as its negative
attitude towards the community.
We appreciate that the government has seen the importance to
have this sector in place, a factor which will no doubt contribute
to the economic growth of the country.

editorial

Somalis Enjoy Rare Peace

After suffering for decades under the yoke of warlord rule, Somalis
are finding rare moments of peace and stability with the rise of
the Joint Islamic Courts (JIC), now controlling major parts of the
Horn of Africa country.
We are finally seeing an end to the killing of civilians and robbery
of their houses, Amina, a rights activist in southern Mogadishu,
told IslamOnline.net on Monday, June 19.
Shops selling narcotics have also been removed, she added.
Many in the areas captured by the JIC from the US-backed Alliance
for the Restoration of Peace and Counter-Terrorism (ARPCT),
including the capital Mogadishu, Jowhar and Balad, have
welcomed the new-found stability.
Transport was moving more freely, business was flourishing,
roadblocks had come down, and guns were less visible on the
streets, they said.
Warlords had controlled Mogadishu since the 1991 overthrow of
president Mohamed Siad Barre. But earlier this month, the JIC
ousted the warlord alliance from the capital after deadly fighting
that left up to 350 people killed.
The African country of 10 million has lacked almost all the
trappings of a functional state, such as national systems of
education, healthcare and justice.
Many Somalis celebrated the newly-established security in their
anarchy-mired country. We are finally enjoying security and
stability Ali Mayo, a Mogadishu resident, told IOL.
JIC security convoys have been patrolling Mogadishu to maintain
order in the capital.
The move aims to restore security and stability to the capital
and hunt down criminals and thieves, said Sheikh Abdul-Qader
Ali Omar, the JIC deputy leader. He urged the Mogadishu
residents to cooperate with the JIC forces to help maintain law
and order. Invited to visit Mogadishu and Jowhar by the JIC, foreign
reporters saw plenty of evidence of change since the defeat of
the US-backed warlords.
Notorious roadblocks in and around cities, where levies were
charged at gunpoint by warlord militia, have disappeared.
Roads were bustling with buses, trucks and donkey-pulled carts.
Ships were lining up outside the nearby port.
A bus fare from Mogadishu to Jowhar used to cost 70,000
shillings ($5). Now it is less than half, about 30,000, driver
Mohamed Ali Ahmed told Reuters. The price dropped overnight
when the courts took over, because the roadblocks went, so now
the journey is toll-free.
Meanwhile, JIC chairman Sheikh Sharif Ahmed said a conference
will be held soon to discuss establishing civil municipal
administrations in areas seized by the JIC.

The meeting will bring together representatives of the Somali

mosaic, he added.
Ahmed said the JIC was also holding talks with Somali dignitaries
at home and abroad to draw up a formula to restore security to the
war-torn country.
Washington accuses the JIC of providing harbor to al-Qaeda
members and seeking to establish a Taliban-like regime, claims
rebuffed by the JIC. We have no special aims, interests or hidden
agenda, Ahmed, told reporters in Jowhar.
But the people wanted stability and security after 16 years of
bloodshed and civil war. This was a popular uprising.
(Islamonline.net)
Since the story of opening the Islamic bank appeared in April,
we have been receiving inquiries regarding job placements in
the proposed bank. The Friday Bulletin has been informed that
in the event of vacancies arising, the general public will be
notified in the media about the positions available.

Business Ethics - the Islamic Perspective-3

This is the third part of a five-part series by Br Abdullatif Essajee which will examine the ethics of business practices in Islam.
The author is a lecturer at Nairobi University and a member of the Jamia Masjid Commitee
(d)
Truthfulness, Sincerity and Honesty
weak or unable to dictate himself, then let his guardian dictate in
Islam condemns every kind of injustice and exploitation in human
justice.
relations. It therefore requires its followers to conduct all business
And bring to witness two witnesses from among your men. And if
transactions with frankness and honesty, and promises Allahs
there are not two men (available), then a man and two women
blessings to those who engage in honest trade. The demand for
from those whom you accept as witnesses-so that if one of them
absolute honesty in business leaves no room for cheating, fraud
(i.e., the women) errs, then the other can remind her. And let not
and exploitation of any kind. Business transactions should be
the witnesses refuse when they are called up. And do not be (too)
characterized by insaf (justice) and ihsan (magnamity). The
weary to write it, whether it is small or large, for its (specified) term.
Prophet (peace be upon him) said: An honest and trustworthy
That is more just in the sight of Allah and stronger as evidence
merchant will be with the Prophets, truthful and the martyrs (atand more likely to prevent doubt between you, except when it is an
Tirmidhiy and al-Haakim).
immediate transaction which you conduct among yourselves. For
It is not allowed for a Muslim to swear falsely in the name of Allah.
(then) there is no blame upon you if you do not write it. And take
The Prophet (peace be upon him) said: On the Day of Judgement
witnesses when you conclude a contract. Let no scribe be harmed
Allah will neither address, nor look at, nor admit that man to
or any witness.
Paradise after purging him of sins who endeavours to expand his
For if you do so, indeed, it is (grave) disobedience in you. And fear
business by swearing falsely in the name of Allah (Muslim).
Allah. And Allah teaches you. And Allah is Knowing of all things.
A businessman is not allowed to conceal the defect of goods or
And if you are on a journey and cannot find a scribe, then a security
make false representation to the client. One is required to openly
deposit (should be) taken. And if one of you entrusts another, then
declare the defects or the inferior quality of ones goods to the
let him who is entrusted discharge his trust (faithfully) and let him
customer. Once the Prophet (peace be upon him) passed by a
fear Allah, his Lord. And do not conceal testimony, for whoever
heap of grain. He put his hand into the heap and felt that his
conceals it- his heart is indeed sinful, and Allah is knowing of what
fingers had caught some dampness. The Prophet of Allah (peace
you do. (Al-Quran 2: 282-283)
be upon him) enquired from the grain dealer, What is this? He
These safeguards minimize the chance of any foul play if not
replied: O Prophet of Allah! Some rain poured over it. The Prophet
eliminating them altogether. A brief description of these would be
(peace be upon him) told him: Why did you not put the wet grain
helpful in understanding their importance.
on top of the heap so that people may readily notice it. The man
who deceives people has nothing to do with me (Muslim).
Writing of a contract.
The trustworthiness of Prophet Musa (peace be upon him) in
A business contract should be put in black and white. This is
assisting the two sisters led to the his recommendation by one of
specially recommended in the case of credit transactions whether
the two sisters to their old righteous father. One of the daughters
large or small. The act of writing down of the terms of transactions
said: Father, hire this man. The best that one can hire is a man
is an effective safeguard against any false claims made by either
who is strong and trustworthy . Al-Quran; 28: 26
party subsequently.
The best form of earning is the one done with ones own hands
Witnesses
and free from dishonesty and fraud. Once the people submitted to
The Quran also recommends that credit transactions should be
the Prophet (P.B.U.H):
witnessed by two reliable adult male or, if two men are not available,
O Prophet of Allah! which is the best form of earning? The Prophet
then one man and two women. The presence of two reliable
(P.B.U.H) replied: Earning with your own hands and income from
witnesses at the time of making a credit transaction is, undoubtedly,
the business, which is free from dishonestyand fraud.
an added safeguard against any sort of foul play, whether deliberate
(e)
Efficiency and Competence
or otherwise, by either of the contracting party.
Islam urges Muslims to do their jobs with perfection. The Prophet
(
Rahn
(peace be upon him) said, Indeed, Allah the Exalted loves when
Another safeguard, in the case of a credit transaction, is the act of
a person does any work to perfect it. (Saheeh al Jami)
taking into possession by the creditor of a real property belonging
(f)
Selection on Merit
to the debtor, as pawn, or mortgage, until the loan is repaid.
The Islamic standard of eligibility for a job is the required merit
The principle of individual responsibility
and competence for it. Allah chose Twaalut to lead the Israelites
According
to the Quran, everyone is held personally responsible
due to his merits over the rest. Allah says: Their Prophet told them:
for any undertaking or transaction made by him. No one is given
Allah has appointed Twaalut to be your king. They replied: How
the privilege of immunity from facing the consequences of ones
can he be our king when some of us are more deserving than
deeds. In this Quranic principle there is dependable deterrent
him? Besides he is not rich. The Prophet said: Allah has chosen
against any irresponsible behaviour. Everyone is answerable both
him to rule over you and blessed him with knowledge and stature.
in this world and in the Hereafter. Islam attaches importance to
Allah grants kingship to whom He pleases and Allah has boundless
this aspect in that everyone will carry his or her burden, as Allah
knowledge.
(Al-Quran; 2: 247).
says: No bearer of a burden will bear anothers burden, and if a
The Prophet Yusuf (peace be upon him) with the unique merit he
heavy laden person cries out for help, none will come forward to
had at his time, recommended himself to the work by saying to the
share the least of his burden, even though he be a close relative
king: He Yusuf said: Set me over the storehouses of the land. Lo!
(Al-Quran; 35: 18).
I am a skilled custodian. (Al-Quran; 12: 55).
A Muslim knows that every action of his or hers is seen by the
Safeguards
Almighty and hence safeguards him or herself from indulging in
Islam in numerous occasions adopts a preventive approach, as
any kind of sin or evil deed. Allah sees and knows every deed and
opposed to a curative approach, towards occurrence of discord,
the two Angels record those deeds. Allah says: Besides this direct
disagreements, ills and sin. This is not an exception as far as
knowledge, We have assigned to every one two scribes (guardian
commercial activities are concerned. The Quran stipulates clearly
angels), the one seated on his right and the other on his left, not a
in the longest verse of the Holy Quran,
single word does he utter but there is a vigilant guardian ready to
O you who have believed, when you contract a debt for a specified
note it down (Al-Quran 50: 17 18). Surely your Lord is ever
term, write it down. And let a scribe write (it) between you in justice.
watchful
(Al-Quran; 89: 14). The highest level
Let no scribe refuse to write as Allah has taught him. So let him
of
Islam
is
to
attain
the
level
of Ihsaan (perfection or benevolence).
write and let the one who has obligation (i.e., the debtor) dictate.
In this respect, the Prophet (peace be upon him said, Ihsaan is
And let him fear Allah, his Lord, and not leave anything out of it. But
to worship Allah as if you see Him, and if you do not achieve this
if the one who has the obligation is of limited understanding or
state of devotion, then (take it for granted ,that) Allah sees you
(al-Bukhaariy and Muslim).
To be continued next week

UN team to meet Somali Islamic leaders

Japan eyes Islamic banking

The U.N. will make its first formal contact with the Islamic militants
that captured most of Somalia with the arrival this week of a security
team to meet with the leaders of the little-known group, a senior
official said Monday.
The trip is meant to prepare for a similar visit by U.N. humanitarian
agencies that want to ramp up aid to the country, said Francois
Lonseny Fall, the U.N. special representative for Somalia.
It also reflects a growing realization within the U.N. that the new
Islamic leaders under the Islamic Courts Union are the closest
thing Somalia now has to a government after some 15 years as a
failed state when different warlords rose and fell, officials said.
Its turning the page time, one U.N. official said. Theres
something functioning like a government there for the first time in a
very long time.
The team will meet the groups representatives in Jowhar, a city 60
miles northeast of the capital Mogadishu. The militants captured
Jowhar from secular warlords last week.
Fall said the meeting will help the United Nations better understand
the Islamic Courts Union, which is little-known and poorly
understood outside Somalia. The United States fears the union is
harboring terrorists, but the group has said it wants to play a
constructive role with the international community.
We dont know exactly what is their intention and thats why the
first mission is going now to Jowhar to meet them, Fall said.
Somalia has been without an effective central government since
the fall of dictator Mohamed Siad Barre in 1991. A transitional
government was established in 2004 but wields little power.

Japan will study the Islamic financial system in an attempt to lure

oil-rich Middle Eastern investors amid record crude prices, the
Nihon Keizai Shimbun daily reported, according to AFP.
The report said that the government-backed Japan Bank for International Cooperation (JBIC) has set up a four-member advisory board of Islamic legal scholars from Saudi Arabia, Malaysia
and Pakistan.
The report also said that Tokyo plans to take an observer seat in
the Islamic Financial Services Board, a Malaysia- based organization established by Islamic states, in a bid to help Japanese
private financial institutions enter the Islamic financial market.
Separately, Japan Asia Investment Co. formed an advisory committee of Islamic legal scholars to confirm that the Sharia-based
Asian Investment Fund it manages jointly with a U.S. company
for Middle Eastern investors complies with Islamic rules.
Islamic banking bans fixed-interest returns and speculation. It
also outlaws investments in alcohol, pork or gambling. Instead,
Islamic banks make regular payments based on profits from
accepted investments.
There are more than 300 international Islamic banks and financial institutions, Secretary-General of the Islamic Financial Service Board, or IFSB, said recently.
Mr Rifaat Ahmed Abdul Karim also said that Islamic banking is
mainly concentrated in the Middle East and Southeast Asia but it
Islamic
is making its way into Europe and
the U.S., Lecture
adding that the demand for Islamic finance is growing since Muslims account for
1.6 billion, or 25 percent, of world population.

Maragua problem to be solved

Continued From Page 1
During the meeting, the school administration was told to set up
communication ties between the parents and the students. The
parents noted that the school was not putting into consideration
their views. If parents are not given attention, will the concerns
of the students be taken into consideration, said one of the
parents.
They also spoke on the need to enhance standards of education
at the school by introducing computer studies.
Among those present were the Supreme Council of Kenya
Muslims (SUPKEM) deputy secretary general Said Kariamburi,
.
Sheikh Muhammad Shebwana, the director of religious affairs
Quran Recitation Competetion
and board member Muhammad Juma Mungai.
The school based in Maragua district with a student population
of more than 150 students, is an educational establishment of
SUPKEM.

Fortnight Lecture

Islamic Lecture

Time Management
The story of Nabi Yusuf
in Islam
(alayhi sallam)
Sheikh Abdullatif Abdulkarim
Sheikh Juma Amir
Saturday June 24
Wednesday June 21
2.00pm-4.00pm
Park Road Masjid
Jamia Masjid Multi-Purpose Hall
After Maghrib

NAIROBI MASAAJID JOINT PROGRAM

VARIOUS MASAAJID AND ISLAMIC INSTITUTIONS HAVE BEEN
INVOLVED IN THE ONGOING FAMINE RELIEF PROGRAMME BY
COLLECTING AND DISTRIBUTING FOOD STUFF AND
THROUGH THE SALE OF COUPONS, BEEN FUNDRAISING FOR
THE SAME CAUSE
TREMENDOUS SUPPORT HAS BEEN REGISTERED SO FAR BUT
FURTHER SUPPORT AND ASSISTANCE IS STILL REQUIRED IF
THE INTENDED RE-STOCKING PROGRAMME IS TO SUCCEED
IT IS THE ONLY VIABLE WAY FOR SUSTAINABLE
LIVELIHOOD TO OUR SUFFERING BROTHERS AND SISTERS
IN THE AFFECTED. PLEASE CONTINUE TO DONATE
GENEROUSLY TOWARDS THIS NOBLE CAUSE.

Forward your donations to

NAIROBI MASAAJID JOINT PROGRAMME,
1ST FLOOR, VILLAGE PLAZA, NGARA, NAIROBI
P.O. Box: 40629, GPO Nairobi. Tel: 3003382
Email ummahkenyanow@yahoo.com
JAMIA MASJID COMMITTEE

P.O. Box: 40629, GPO Nairobi.

Tel: 243504/505, Fax: 342147, Email: majlis@wananchi.com
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Comparative Debate

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