Uganda’s insurance market is set for a revolution following the announcement that Ugandans will soon be able to access Takaful insurance products for their risk management needs.
According to the Director Supervision at the Insurance Regulatory Authority of Uganda, Mr. Benerd Obel, the Authority is in advance stages of licensing the first Takaful insurance service provider.
Mr. Obel was speaking at a half-day Takaful insurance workshop on June 23, 2025, at Hotel Africana to sensitize industry players about Takaful.
He noted that the arrangement of policyholders sharing into profits made by a Takaful insurer at the end of a given period is a plus for this kind of product and is expected to widen and deepen the insurance market, especially among the uninsured public that has been skeptical about conventional insurance.
Takaful is a unique and ethical financial model rooted in the principles of mutual cooperation, shared responsibility, and social solidarity. It is grounded in Shariah law, emphasizing fairness, transparency, and ethical investment, which sets it apart from conventional insurance model.
It operates as a cooperative system where participants contribute to a pool of funds, which are then used to support individuals within the group in times of need, embodying the principle of collective care.
Dr. Twaha Ahmed Kasule, a senior lecturer at the Islamic University in Uganda (IUIU) who was the keynote speaker said Uganda is ready for the adoption of Takaful insurance model. “What we needed were the legal reforms and these have been finalized by IRA and are will be signed soon.
“More than 200 students have been training people in Islamic finance and banking at the IUIU. This means the knowledge of Islamic insurance is already in the market,” Kasule said.
He noted that companies intending to offer Takaful insurance should have sharia committees to enable them comply with sharia principles while undertaking investments and handling resources.
“This will widen the scope of the insurance business. There is always the issue of the group that is always left out on insurance but once you bring on board Takaful, you help insurance inclusion and improve insurance penetration,” he said.