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 LondonSchool of Economics, in the UK, examines the development and activities ofWakfs in East Africa. The research is based on case studies undertaken in Kenyaand 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 religiousfacilities or to support their own family and descendants.

The research shows that inEast African towns and cities, such as Mombasa, Lamu, Malindi and Zanzibar StoneTown, Wakfs have contributed to public infrastructure and social harmony. Forexample, 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 strictrules. In both Kenya and Tanzania, complex legislation and supervisorymechanisms ensure that endowments are registered and subject to audits toensure compliance with founders’ wishes. In Kenya, the Wakf Commissioners ofKenya (WCK) look after Wakf properties and related matters; the Wakf and TrustCommission (WTC) has a similar role in Tanzania.

Key findings of the researchinclude:

In Kenya:

• Strict rules governingthe operation of Wakfs have increased their credibility and legitimacy amongmembers of the public.
• There is considerablepotential to raise more revenue from Wakf endowments; but the necessaryprofessional expertise and political will is currently lacking.

In Tanzania:

• In Stone Town,Zanzibar, theUNESCO heritage-listed heart of the island’s capital,  Wakfproperties house around one quarter of the population making a huge contribution to the town’s architecturalheritage.
• But the buildingsare expensive to maintain and rents are heavily subsidised.
• Wakf charitableactivities have helped to increase social cohesion in Stone Town, but bettermanagement is needed.

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

The researcher concludes that: