The Capital Market Authority plans to boost investments in sharia compliant investment tools specifically targeting the infrastructure sector.
Acting chief executive Paul Muthaura said there is a lot of interest in sharia capital market products both local and international, especially from the Gulf region.
"The Authority is particularly keen to see the take-off of the market for Islamic Investment products given the strong correlation between these products and infrastructure financing for which the nation is in heavy demand for," he said.
So far, three Shariah compliant Collective Investment Schemes (Unit Trust) have been approved.
"There is still a lot of interest, and they (schemes) are waiting to see where the policy framework is going before they come and seek licenses. Both locally and internationally we continue to get a lot of interest," he said on Wednesday during a stakeholders meeting.
Islamic compliant finance has been getting a lot of interest in Kenya in line with global finance trends and closer links with the Islamic Arab world. So far there are Islamic banking, insurance and bonds products in the market.
"Our priority objective is to accelerate the building of critical mass for the development of a significant Islamic Capital Markets industry thereby widening the range of available Sharia-compliant products and services," Muthaura said.
CMA said it is increasing awareness on the potential issuance of Sukuk (bonds) products as a means of alternative financing for infrastructure development.