By Infora Media

KAMPALA — Uganda has officially entered the Islamic insurance market after President Yoweri Kaguta Museveni on Tuesday launched Tamini General Insurance, the country’s first Sharia-compliant insurer.

The launch at Millennium Park introduces Takaful, a system based on risk-sharing and interest-free financing, into a sector historically dominated by conventional insurance. The move is expected to expand access to financial protection for entrepreneurs, farmers, traders, and other underserved communities.

Tamini’s entry follows the gazettement of the Insurance (Takaful and Retakaful) Regulations, 2025, which created a legal framework for Islamic insurance operations in Uganda.

Dr Kaddunabbi Ibrahim Lubega, Chief Executive Officer of the Insurance Regulatory Authority of Uganda, confirmed that the company was licensed in November 2025. He said the regulations broaden financial inclusion by accommodating consumers seeking faith-aligned products.

The launch strengthens the foundation laid by Salaam Bank Limited, Uganda’s first Islamic bank, launched nearly two years ago. Together, the two institutions create a Sharia-compliant financial ecosystem, allowing clients to access both capital and risk protection.

Salaam Bank chairman Ibrahim M. Abdirahman said the integrated approach ensures entrepreneurs can finance and insure their businesses without compromising religious principles. “Finance without protection leaves gaps,” he noted.

In his address, President Museveni framed Islamic insurance as a tool for economic stability. He said government initiatives such as the Parish Development Model are structured without profit motives and emphasised the importance of linking financial empowerment to community values.

He added that insurance builds confidence among borrowers and investors, encouraging productive use of funds and fostering household and national economic growth.

The ceremony, organised by the Office of the National Chairman under manager Hadijah Namyalo Uzeiye, concluded with an Iftar dinner attended by Muslim leaders and community members.