Kampala, Uganda: President Yoweri Kaguta Museveni Tuesday officially launched Tamini General Insurance, Uganda’s first Shariah-compliant insurance company, marking a new chapter in the country’s financial sector.
The launch, held during a mega Iftar dinner organized by his Kyambogo Office of the National Chairman (ONC), follows the licensing of Tamini by the Insurance Regulatory Authority of Uganda (IRA) in November 2025 under the Insurance Takaful and Re-Takaful Regulations 2025.
Tamini General Insurance joins Salaam Bank as the second Shariah-compliant financial institution in Uganda, creating what stakeholders described as a fully integrated ethical financial ecosystem.
‘Ethical Shield’ for Wealth Creation
In his remarks at the function, Tamini Insurance Group CEO Mohamed Bahdon described the launch as a historic milestone rooted in the Islamic principle of Kafalah — mutual protection and solidarity.
“By granting this licence, you have legalised a new form of social security rooted in the ethical principle of mutual protection,” Bahdon said.
He noted that two years ago, President Museveni launched Salaam Bank as Uganda’s first ethical bank, adding that banking and insurance are twin pillars of any modern economy.
“Salam Bank provides the ethical tools for wealth creation. Tamini General Insurance provides the ethical shield to protect that wealth. Together, we now offer Uganda a complete and seamless integrated financial ecosystem,” he said.
Bahdon revealed that Salaam Group intends to expand investment in Uganda, including plans to introduce Halal health insurance and construct hospitals.
IRA Chief Executive Officer, AlHajj Kaddunabi Lubega said the licensing of Tamini opened a new chapter in Uganda’s financial and social development.
“Takaful means operations shall not entertain interest-based dealings, it avoids uncertainty, gambling and investment in haram ventures,” Lubega said.
He revealed that Uganda’s gross insurance premiums have grown from Shs240 billion in 2020 to approximately Shs2 trillion in 2025, expressing optimism that Takaful will further deepen financial inclusion. Globally, the Takaful market is valued at about $36.6 billion and is projected to grow to $75.3 billion by 2033.
Lubega urged Tamini to uphold the highest ethical standards and also appealed to the President to fast-track the National Health Insurance Scheme.
Museveni Commends Interest-Free Model
President Museveni commended Salaam Bank for championing interest-free banking, noting that saving and borrowing without interest is a long-standing financial practice beneficial to society.
“Charging interest is not the only way to run a financial system. Even in our traditional settings, people would lend and support each other without exploiting one another,” Museveni said.
He emphasised that government initiatives such as the Parish Development Model (PDM) are also structured without profit motives and are designed to empower households.
“I have discussed with Muslim leaders how financial empowerment can align with community values. Where a man has more than one wife, we shall consider how PDM support can equitably reach each household unit,” he added.
The President explained that Tamini’s role is to provide insurance and financial security, strengthening confidence among entrepreneurs and borrowers.
“When people know their property, crops or businesses are protected, they invest more confidently. That is how you transform from a consuming nation into a producing nation,” he said, urging Ugandans to utilise borrowed funds responsibly and productively.
“Money is for production, not for consumption. If you borrow, invest it properly to grow your income and develop your household,” he advised.
The President also applauded Chief Muzzukulu Hajjat Hadijah Namyalo Uzeiye for her grassroots mobilisation and promotion of the NRM manifesto.
How Islamic Insurance Works
Islamic insurance, also known as Takaful, operates on risk-sharing rather than risk transfer. Participants contribute to a mutual pool (Tabarru) to guarantee one another against defined risks.
The model is anchored on three core pillars:- Ethical Investment: Premiums are invested only in Shariah-compliant ventures, Transparent Oversight: A Shariah Advisory Board supervises all transactions and Collective Participation: Clients are treated as members of a mutual protection community rather than mere policyholders.
Under the Mudaraba profit-sharing arrangement, part of the pooled funds is invested, and profits are shared with participants. Any surplus remaining after claims and operational costs may be redistributed to members.
DailyExpress understands that Tamini will initially offer General Takaful products such as motor, fire and property insurance, with plans to expand into Family Takaful (life and long-term coverage).
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