Uganda has taken a major step toward expanding Sharia-compliant financial services with the launch of its first Islamic insurance provider. Tamini General Insurance officially began operations on March 3 after receiving approval from the Insurance Regulatory Authority of Uganda in November 2025. The company’s launch introduces Takaful, a form of Islamic insurance based on shared risk and cooperation among policyholders.
Tamini General Insurance is a subsidiary of Salaam Group, a financial services group that operates in Djibouti, Malaysia, Kenya, and Uganda. The company aims to provide insurance solutions that comply with Islamic financial principles. Its introduction to the Ugandan market offers an alternative for customers who prefer financial products aligned with religious guidelines.
The company operates under the Takaful model, which differs from conventional insurance. Instead of transferring risk to the insurer, participants contribute to a shared pool that is used to compensate members who suffer losses. The system avoids interest-based transactions and investments in sectors considered prohibited under Islamic law, emphasizing mutual assistance and shared responsibility among participants.
The launch ceremony was attended by Ugandan President Yoweri Museveni, highlighting the government’s support for expanding Islamic finance in the country. Uganda has gradually opened its financial sector to Sharia-compliant products as part of efforts to broaden financial services and promote inclusion.
In 2023, Uganda’s Parliament approved reforms to the Financial Institutions Act allowing banks and other financial institutions to offer Sharia-compliant services. During the same year, Salaam Bank Uganda became the country’s first licensed Islamic bank after acquiring Top Finance Bank and receiving authorization from the Bank of Uganda in September 2023.
Uganda’s insurance sector has grown in recent years, although coverage remains limited. According to the Insurance Regulatory Authority, gross written premiums reached around 2 trillion Ugandan shillings in 2025, compared with 1.1 trillion in 2021 and 240 billion in 2020. Despite this growth, insurance penetration in the country remains below 1%, meaning a large portion of the population is still uninsured.
Officials believe the introduction of Takaful could help expand insurance access by attracting customers who prefer financial products that follow Islamic principles. By providing additional insurance options, the sector could help households protect their income, allow businesses to better manage risks, and contribute to the broader development of Uganda’s financial system.