Uganda launches its first Islamic insurer, Tamini General Insurance, as it seeks to widen financial inclusion
Kampala, Uganda | THE INDEPENDENT | Uganda has taken another step towards diversifying its financial sector with the launch of its first Shariah-compliant insurance company, a move officials say could widen access to risk protection and deepen the country’s nascent Islamic finance market.
President Yoweri Museveni, who presided over the launch of Tamini General Insurance in Kampala on March.03, described the development as part of a broader effort to modernise the country’s financial architecture and extend services to communities historically excluded from conventional products.
The company will operate under the Takaful model — an Islamic form of insurance based on mutual risk-sharing rather than profit-driven underwriting. Participants contribute to a pooled fund used to compensate members who experience losses, in accordance with Islamic principles that prohibit interest-based transactions, speculative uncertainty and investments in prohibited sectors.
For many Muslims, those restrictions have long made conventional insurance products difficult to adopt. Uganda’s Muslim population is estimated at about 6million people, or roughly 13 per cent of the country’s 45m citizens, according to data from the Uganda Bureau of Statistics.
Speaking at the launch, Museveni said expanding insurance options was essential for economic resilience, particularly among small businesses and households vulnerable to financial shocks.
“Insurance is about planning for risk and protecting wealth,” he said, urging Ugandans to embrace formal risk-management tools as the economy becomes more complex.
Tamini is affiliated with the Salaam Group, the financial services conglomerate behind Salaam Bank, Uganda’s first fully fledged Islamic bank. The lender was established after regulatory reforms enabled the introduction of Shariah-compliant banking services in the country.
Tamini Group CEO Mohamed Bahdon said the insurer will focus on ethical standards, financial inclusivity, and sustainable growth.
“As we do business, we carry a legacy rooted in every decision… African money must be invested in Africa. For too long, wealth generated from our continent has flowed out, promoting other interests while leaving our communities underserved,” he told the gathering.
Bahdon added that Uganda is not just a market but a home where the group seeks to build a resilient financial ecosystem.
Takaful insurer boosts the sector
Industry regulators say the arrival of a Takaful insurer could help expand a sector that remains underdeveloped by global standards. Uganda’s insurance penetration is still low, with many small enterprises and farmers operating without formal protection against risks such as accidents, illness or property damage.
According to Ibrahim Kaddunabbi Lubega, chief executive officer of the Insurance Regulatory Authority of Uganda, the company’s licensing followed the introduction of the Insurance (Takaful and Retakaful) Regulations in October 2025, creating a legal framework for Islamic insurance.
“The licensing of Tamini marks a regulatory milestone and opens a new chapter in the financial and social fabric of our nation,” he said.
Uganda’s insurance industry has expanded steadily over the past decade. Gross written premiums rose from about Ushs296.8bn in 2011 to Ushs1.1tn in 2021, reaching roughly Ushs1.7tn in 2024, with regulators estimating the figure could approach Ushs2tn in 2025.
30 insurance companies
The launch of Tamini also expands the structure of Uganda’s insurance market. The country now has 21 general insurance companies — including one operating under the Takaful model — and nine life insurance firms, according to the regulator.
Officials argue that the introduction of Islamic insurance could accelerate sector growth by drawing in new customers who previously stayed outside the insurance market for religious or ethical reasons. The model may also appeal beyond Muslim communities because of its emphasis on transparency, ethical investment and shared responsibility among policyholders.
Globally, Islamic insurance remains a relatively small but rapidly expanding segment of financial services. Industry estimates suggest the Takaful market was worth about $36.6bn in 2024 and could reach $75.3bn by 2033, implying annual growth of roughly 8–9 per cent.
Across Africa, several countries — including Kenya, Nigeria, South Africa and Egypt — have introduced Shariah-compliant insurance frameworks as governments seek to broaden financial inclusion and attract investment from Middle Eastern markets.
Uganda’s regulators see the launch of Tamini as part of the same trend. By accommodating different financial systems within its regulatory framework, officials hope to mobilise domestic savings while strengthening links with global Islamic finance networks.
Tamini plans to offer a range of general insurance products, including motor, property and business cover, structured in accordance with Islamic guidelines. The company will also be overseen by a Shariah advisory board tasked with ensuring compliance with religious principles.
If adoption grows, regulators say the introduction of Takaful could help deepen Uganda’s insurance market while providing millions of citizens with an additional pathway to protect assets and livelihoods.
