Museveni launches Tamini General Insurance to boost financial inclusion

KAMPALA — President Yoweri Museveni has launched Uganda’s first Islamic insurance firm, Tamini General Insurance, in a move aimed at bringing millions more people into the formal economy.

The firm, a subsidiary of the Salaam Group, was inaugurated during an Iftar dinner in Kampala on Tuesday. The president said the arrival of Sharia-compliant insurance would “complete the circle” of financial inclusion in the country.

“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,” Mr Museveni told representatives from the group.

The president urged the Muslim community to use the new model to boost development, particularly through livestock and coffee farming. He said such initiatives were essential to his government’s goal of eliminating poverty.

“By 2013, only 32% was the only portion in the money economy. Through Operation Wealth Creation, at least 70% have entered the money economy,” he said, adding that further government programmes would target the remaining 30%.

The launch follows the legalization of Islamic banking and finance in Uganda in 2023. Islamic insurance, known as Takaful, differs from conventional models by using a collective pool of funds where participants share risk rather than transferring it to a company.

Ibrahim M. Abdirahman, chairman of Salaam Bank Limited (Uganda), said the firm aims to address a major gap in a country where insurance penetration is currently below 1%. He said many Ugandans had previously avoided the sector due to religious or ethical objections to interest-based services.

Mohamed Bahdon, the chief executive of Tamini Insurance Group, described the firm as an “ethical shield” for wealth creation.

“A farmer who accesses Halal financing from Salaam Bank to grow his crop can now insure that crop through Tamini,” Mr Bahdon said.

The Insurance Regulatory Authority (IRA) said the broader insurance sector is already seeing significant growth. Chief executive Ibrahim Lubega Kaddunabbi reported that gross premiums rose to 2 trillion shillings in 2025, compared to just 240 billion shillings in 2020.

Mr Kaddunabbi said the Takaful model’s emphasis on transparency and fairness would likely appeal to people of all faiths, not just the Muslim community.

Under the firm’s profit-sharing model, if no insurance claims are made, any surplus is invested in Sharia-compliant ventures, with profits shared among the participants.

Uganda is the latest country to adopt the model, following similar moves in the UK, South Africa and Singapore. Authorities are also planning to introduce Sukuk, or Islamic bonds, to further diversify the nation’s financial markets.