The Legislative Challenges of Islamic Banking in Tanzania

Abstract

Tanzania is a multi-religious and a multi ethnic society with a common law legal structure. The Islamic Banking system emerged in 2008 in Tanzania and is growing very fast. However, the adoption of Islamic banking in Tanzania has been accompanied by some legislative challenges which cannot effectively serve the purpose for which the financial institutions were set up. This is a result of the single legal framework working with the Islamic Banking. In this context the enactment of the legislation to allow Islamic Banking to operate according to Islamic rules are needed and give room in financial markets for Islamic financial transactions.

Keywords: key words, Tanzania, Islamic Law, Islamic bank