Kampala, Uganda: President Yoweri Kaguta Museveni is today officially launching Tamini General Insurance, Uganda’s first licensed Islamic insurance company, at a mega Iftar dinner organised by his Kyambogo-based Office of the National Chairman (ONC).
Tamini General Insurance, a member of Salaam Group, received its licence from the Insurance Regulatory Authority of Uganda (IRA) on November 26, 2025, marking a milestone in Uganda’s evolving Islamic finance landscape.
The firm becomes the second Shari’ah-compliant financial institution in the country after Salaam Bank, which was launched on March 27, 2024 following amendments under the Financial Institutions (Amendment) Act 2023.
A Landmark for Islamic Finance
Islamic insurance, commonly known as Takaful, is a Shariah-compliant cooperative insurance model based on mutual assistance and shared responsibility. Unlike conventional insurance, which operates on risk transfer, Takaful is structured around risk sharing, prohibiting interest (riba), excessive uncertainty (gharar), and gambling (maisir).
Mohamed Bahdon, Chairman of Tamini Group, says the establishment of Tamini and Salaam Bank creates a comprehensive Shariah-compliant financial ecosystem targeting Ugandans who have historically avoided conventional financial services due to religious or ethical considerations.
“In Uganda, less than one percent of the population takes up insurance, and we know a significant number snub insurance because of religious considerations. That is one of the gaps we have come to close,” Bahdon said.
He explained that the model is anchored on ethical investment, transparent oversight and collective participation.
How Takaful Works
Michael Mande, Chief Executive Officer of Salaam Bank Limited Uganda, the parent company of Tamini, said the premiums amassed over the insurance period are invested in Shariah-compliant ventures, and profits generated are shared among participants.
Under the Takaful framework, participants contribute to a mutual pool to guarantee each other against defined risks. If no claim arises, part of the surplus may be redistributed to members.
“The company invests the premium in a Sharia-compliant business and earns returns. At the end of the year, profits are shared with members of the pool,” Mande said.
He added that participants who do not register claims may benefit from reduced premiums in subsequent years.
Mohamud Omar, CEO of Tamini General Insurance, explained that 30 percent of the pooled funds will be retained as management fees, while the remainder is invested under Mudaraba — an Islamic profit-sharing arrangement where capital providers and managers share profits based on agreed ratios.
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).
A Shari’ah Advisory Board will oversee all transactions to ensure compliance with Islamic principles, while surplus funds after claims and operational costs will be redistributed to participants.
Scholars Welcome Initiative
Muslim scholars have welcomed the development as long overdue.
Sheikh Hafithu Walusimbi of the Islamic University in Uganda (IUIU) said many Muslims have hesitated to take up insurance due to concerns over interest-based models.
“Most insurance operators have been running under conventional systems that include elements not compliant with Shariah. Muslims have long desired a system aligned with our faith,” he said.
Walusimbi urged the Muslim community to embrace the initiative while seeking adequate knowledge through awareness sessions to fully understand their rights and obligations.
Expanding Financial Inclusion
Globally, countries such as the United Kingdom, South Africa and Singapore have integrated Takaful products into mainstream financial systems.
In Uganda, reforms by the Bank of Uganda paved the way for Islamic banking regulations, while the Capital Markets Authority is advancing plans to introduce Sukuk (Islamic bonds).
Stakeholders say the introduction of Islamic insurance could help deepen insurance penetration and strengthen financial inclusion in a country where uptake remains below one percent.
The leadership of Tamini General Insurance says the firm intends to prioritise ethical finance, community protection and long-term sustainability over profit maximisation alone.
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