KAMPALA — President Yoweri Museveni on Tuesday launched Uganda’s first Islamic insurance firm, describing the expansion of Sharia-compliant finance as a critical step toward the country’s economic transformation.
Tamini General Insurance, a subsidiary of the Salaam Group, was inaugurated during an Iftar dinner organized by the Office of the National Chairman. Museveni praised the group for its role in diversifying the nation’s financial sector and providing tools for broader participation in the economy.
“I thank you [Salaam Bank and Tamini] for completing the circle of financial inclusion,” Museveni said. “Salaam Bank and Tamini, you are welcome to Uganda. Uganda is a growing market with over 45 million people. The population will reach 100 million by 2050. You are in Uganda at the right time.”
The president urged the Muslim community to leverage the Takaful model to engage in income-generating activities, specifically highlighting livestock and coffee farming as pathways for socioeconomic growth.
“We should work to eliminate poverty by getting everyone out of poverty,” he said. “By 2013, only 32% was the only portion in the money economy. Through Operation Wealth Creation, at least 70% have entered the money economy. PDM will help to ensure the remaining 30% also gets out of poverty.”
The launch follows the Financial Institutions (Amendment) Act 2023, which legalized Islamic banking and finance in Uganda. This legislative shift paved the way for the 2024 debut of Salaam Bank and now the introduction of Takaful, or Islamic insurance.
Unlike conventional insurance based on risk transfer, Takaful operates on principles of mutual cooperation and shared responsibility, where participants contribute to a collective pool to protect one another against loss. The model prohibits interest (riba), excessive uncertainty (gharar) and gambling (maisir).
Ibrahim M. Abdirahman, chairman of Salaam Bank Limited (Uganda), said the firm aims to bridge a critical gap in a market where insurance penetration remains below 1 percent. He noted that many Ugandans have historically avoided traditional financial services due to religious or ethical objections.
Tamini Insurance Group CEO Mohamed Bahdon said the license, granted on Nov. 26, 2025, legalizes a form of social security rooted in the principle of Kafalah, or mutual protection.
“Salaam Bank provides the ethical tools for wealth creation. Tamini General Insurance provides the ethical shield to protect that wealth,” Bahdon said. “A farmer who accesses Halal financing from Salaam Bank to grow his crop can now insure that crop through Tamini.”
Insurance Regulatory Authority Chief Executive Ibrahim Lubega Kaddunabbi reported significant growth in the broader sector, with gross underwritten premiums reaching approximately 2 trillion shillings in 2025. He noted that the Takaful model’s emphasis on fairness appeals to demographics beyond the Muslim community.
Under the Mudaraba profit-sharing model used by the firm, management retains 30 percent of the fund as an operational fee. If no risks are registered, the surplus is invested in Sharia-compliant ventures, with profits shared among participants.
Sheikh Hafithu Walusimbi, a scholar at the Islamic University in Uganda, welcomed the development, noting that Takaful ensures participants remain part of the excess pool even if an insured event does not occur.
The introduction of these services aligns Uganda with global financial markets in the United Kingdom, South Africa and Singapore. The Capital Markets Authority is also advancing plans to introduce Sukuk, or Islamic bonds, to further diversify the nation’s financial instruments.
