Given that private consumption accounts for nearly 60 per cent of expenditure on GDP, it can be seen why we take such an interest in the “wealth effect”, and what house prices are doing. Over the past three years, these linkages have been of particular interest to monetary policy. The upsurge in housing activity and construction has added directly to domestic inflation pressures.
One of the ways of achieving this goal is ensuring that Kenya becomes the gateway for Shariah-compliant financing, through establishment of an enabling environment that supports the development of Shariah-compliant financial services and products. To this end, the Central Bank has in the recent past liaised with the Shariahcompliant banks and established the main challenges that impede the achievements of this objective.