Kenya's Linzi Finco Trust is aiming to raise 3 billion shillings ($20 million) from the country's debut sale of Islamic bonds known as sukuk at a yield of 11.13%.     

The funds raised from the bond named 'Linzi Sukuk' will be used to develop more than three thousand housing units, the Capital Markets Authority (CMA) Chairman Ugas Sheikh Mohamed said in a televised media briefing on Wednesday.    

"This is the first of its kind in the market. Sukuk is a Sharia compliant product, it is an instrument that has been lacking in this market and that's why we're excited about it," Mohamed said.     

"We have a whole group of ethical investors who want to participate in our capital markets, and they have not had an opportunity... This is a milestone for us."

Sukuk, also referred to as Islamic bonds, are financial instruments that adhere to Shariah rules.    

Kenya has an annual housing demand of 250,000 units with an estimated supply of 50,000 units, according to the non-profit organisation Habitat for Humanity Kenya. 

(Writing by Seban Scaria