Ssonko Muhammedi SL

The risks of fragmented zakat collection are no longer theoretical. As we begin this year 2026 let's reflect from one of the case back in 2025 where one of the mosque in Wakiso was challenged with zakat distribution. This may highlight the challenges other mosques face. A zakat payer entrusted UGX 2 million to an Imaam for distribution. Acting in good faith but without an institutional framework, the funds were distributed informally. Later the news of zakat paid to the Imaam reached the mosque management committee then requested accountability, there were no records, criteria, or structured reports. This led to mistrust, accusations of mismanagement, reputational damage to the Imaam, and division within the mosque community. This incident reflects a systemic gap rather than individual failure: ➡️ Limited guidance for zakat payers on institutional channels ➡️ Lack of administrative capacity and protection for religious leaders ➡️ Absence of standardized zakat governance at mosque l...

The recent increase in the formation of Islamic Savings and Credit Cooperative Organizations (SACCOs) in Uganda represents a promising development for the Muslim community and the wider financial inclusion agenda. This growing interest reflects a collective aspiration for economic empowerment through Shariah-compliant financial models that promote ethical finance, shared responsibility, and social cohesion. For this momentum to translate into lasting impact, however, Islamic SACCOs must be firmly grounded in strong internal systems that align with both Islamic finance principles and Uganda’s cooperative and financial regulatory framework. Sustainability is best achieved when community enthusiasm is matched with sound governance, financial discipline, and institutional capacity. Historically, the limited scale and sustainability of Muslim-founded SACCOs has been influenced by gaps in coordinated sensitisation, technical capacity, and institutional linkage rather than a lack of opportuni...

In Uganda, Islamic finance is still at infancy stage and a section of the population view it as a religious product meant for Muslims. Globally, however, the reality tells a different story. Millions of non-Muslims are using Islamic finance not for faith reasons, but for economic, ethical, and risk-management advantages. 🌍 A Global Reality Beyond Religion Despite its name, Islamic finance is not like prayer (salat) or zakat. It is a commercial system governed by Shariah principles limited to business transactions (mu'amalat) principles that regulate fairness, transparency, and responsibility in human-to-human economic dealings, without any restriction on religious affiliation. Today, Islamic finance is a USD 3.88+ trillion global industry, thriving even where Muslims are a minority: ➡️ UK homeowners (many non-Muslims) use Islamic mortgages for transparent, asset-backed housing finance ➡️ Ethical investors in Canada, Germany, and Luxembourg invest in Shariah-compliant funds ➡️ Sout...

Uganda’s entry into Islamic banking marks a significant milestone for ethical and riba-free financing. For Muslim business leaders, this is not merely an alternative banking option it is a strategic economic platform that requires deliberate participation to succeed. Yet a critical gap remains. My early observation currently to the industry is that a section of business leaders engage Salam (Islamic) bank only at the point of financing (loan access), without establishing a sustained banking relationship beforehand. This approach weakens both the institution and the wider business ecosystem it is meant to serve. Islamic bank is a balance-sheet driven institution like any other institution. Its capacity to finance trade, assets, and expansion depends directly on customer deposits, transaction volumes, and long-term relationships. Financing does not appear on demand; it is enabled by liquidity built over time. Without committed depositors and active accounts, financing capacity remains li...

This reflection was inspired by public feedback on my recent post about "Scaling Islamic Finance in Uganda: Driving Financial Inclusion and Sustainable Development". One comment stated that “Islamic finance can only work in Islamic countries.” That comment motivated me and it reflects broader misconceptions that stakeholders, regulators, and marketers must be ready to address. As Uganda continues rolling out Islamic banking, Takaful (Islamic insurance), Islamic microfinance, and other components here is the right guidance to clarify common misunderstandings: 1️⃣ Islamic finance in Uganda is NOT for Muslims only It is an ethical financial alternative open to all Ugandans Muslims and non-Muslims alike grounded in fairness, transparency, and asset-backed financing. 2️⃣ Islamic finance does NOT require Uganda to be an Islamic state Islamic finance is part of the growing global financial system. It operates successfully in non-Muslim countries such as the UK, Canada, Germany, Sou...

🧑‍🧑‍🧒‍🧒Takaful is defined as a "shari'ah compliant system of mutual support that provides financial security to a group of members in case of defined emergencies and hazards, via contributions that are considered as donations". (AAOFI) 🇺🇬The 20-page 2025 Takaful and Retakaful Regulations issued by the Insurance Regulatory Authority of Uganda (IRA) mark a major advancement in Takaful (Islamic insurance). The regulations reinforces the mutual cooperation and shared responsibility by strengthening governance structures, enhancing transparency, and priotising consumer protection. As a reflection, the regulations build public trust, promote ethical practices, and safeguard policyholder interests. Beyond ensuring strong shariah compliance, the regulations also enhances resilience, accountability, and sustainable growth within the takaful industry. ✍🏾Public Takeaways 📝Only Licensed & Approved Operators 📌Takaful and retakaful can only be offered by operators or wind...

Islamic finance is among the fastest-growing segments of the global financial system, reaching USD 3.88 trillion in assets by 2024 (IFSB, 2024) driven by ethical investment, risk-sharing, and asset-backed financing. With projections of USD 7.5 trillion by 2028 (Standard Chartered Bank 2025). Islamic finance is increasingly supporting inclusion, digital innovation, and the halal value chain. The Islamic finance ecosystem comprises of Islamic Banking, Sukuk (Islamic bonds), Takaful (Islamic insurance) and Islamic funds or instruments which support diversfication and investment solutions. Its mechanisms of financing has encouraged both majority Muslims and non minority Muslim countries including those found in Europe mainly United Kingdom. In Uganda, Islamic finance formally emerged following amendments to the Financial Institutions Act in 2016, later refined in 2023. Even earlier, Islamic microfinance models had been implemented through government initiatives (Microfinance Suppprt Centre...