Reforming Wakfs in Kenya and Tanzania

In East Africa, Islamic charitable trusts or Wakfs have a long history of helping to fund social projects. Wakf properties also provide affordable housing and premises for business and community activities. However, reforms will be necessary if Wakfs are to meet the challenges of the twenty-first century.

Research from the London School of Economics, in the UK, examines the development and activities of Wakfs in East Africa. The research is based on case studies undertaken in Kenya and Tanzania (particularly Zanzibar) between 2001 and 2004.

Wakfs have religious origins. Through the creation of a Wakf, Muslims can put their assets (usually property) into trust for the benefit of others: for example, to fund social and religious facilities or to support their own family and descendants.

The research shows that in East African towns and cities, such as Mombasa, Lamu, Malindi and Zanzibar Stone Town, Wakfs have contributed to public infrastructure and social harmony. For example, Wakfs have helped to fund libraries, universities, public spaces and cemeteries, as well as schools, health centres and hostels for homeless people.

Wakfs are governed by strict rules. In both Kenya and Tanzania, complex legislation and supervisory mechanisms ensure that endowments are registered and subject to audits to ensure compliance with founders’ wishes. In Kenya, the Wakf Commissioners of Kenya (WCK) look after Wakf properties and related matters; the Wakf and Trust Commission (WTC) has a similar role in Tanzania.

Key findings of the research include:

In Kenya:

• Strict rules governing the operation of Wakfs have increased their credibility and legitimacy among members of the public.
• There is considerable potential to raise more revenue from Wakf endowments; but the necessary professional expertise and political will is currently lacking.
• In Tanzania:

In Stone Town, Zanzibar, the UNESCO heritage-listed heart of the island’s capital,  Wakf properties house around one quarter of the population making a huge contribution to the town’s architectural heritage.

But the buildings are expensive to maintain and rents are heavily subsidised.

Wakf charitable activities have helped to increase social cohesion in Stone Town, but better management is needed.

Wakfs have proven to be durable institutions that have an important role to play in helping to reduce poverty and promote social cohesion in East Africa. However, they will need to evolve if they are to meet the challenges of the twenty-first century.

The researcher concludes that:

In Kenya and Tanzania, reform is needed to strengthen Wakfs against political and economic pressures; Wakfs need to adapt to meet modern concerns for equity, community control of resources and conflict-free co-existence between various income groups.

Wakf properties could bring in higher rental yields and vacant plots could be developed: both agencies lack the expertise to benefit from the booming urban property sector and are thus missing chances to build up a reserve to invest in social projects consistent with their mandate of protecting and promoting philanthropic activities.

Both the WCK and WTC need more support from government in order to realise their full potential.

Wakfs could move into new areas of work such as: employment and training programmes in deprived neighbourhoods, environmental projects, human rights, and accommodation for refugees and internally displaced persons.

Encouraging new endowments to fund credit schemes and training programmes could improve employment opportunities and contribute to poverty reduction.

Source(s):
‘Financing Social Infrastructure and Addressing Poverty through Wakf Endowments: Experience from Kenya and Tanzania’, Environment and Urbanization 20 (2), pages 427-444, by Saad S Yahya, 2008 Full document.

Funded by: Aga Khan Cultural Services; Ford Foundation

id21 Research Highlight: 30 April 2009

Further Information:
Saad S Yahya
Planning, Development, Asset Management, Heritage
PO Box 14687
Nairobi, Kenya

Tel: +254 2 2252295
Contact the contributor: sya@nbi.ispkenya.com

Planning, Development, Asset Management, Heritage, Kenya

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