MUSEVENI LAUNCHES TAMINI GENERAL INSURANCE IN UGANDA MARKET

B y Felix Oketcho 

President Yoweri Museveni has on officially launched Uganda’s first Islamic insurance firm, marking an expansion of the country’s Sharia-compliant financial ecosystem.

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 Salaam Group for its role in diversifying the nation’s financial sector.

“I thank you [Salaam Bank and Tamini] for completing the circle of financial inclusion,” he 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 said.

He asked the Muslim community to use the Takaful model for development engaging in income generating activities for social economic transformation

“We should work to eliminate poverty by getting everyone out of 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. PDM will help to ensure the remaining 30% also gets out of poverty,” he said.

The move comes nearly two years after the Financial Institutions (Amendment) Act 2023 legalized Islamic banking and finance in Uganda, following the 2024 debut of Salaam Bank.

Islamic insurance, known as Takaful, operates on principles of mutual cooperation and shared responsibility. Unlike conventional insurance, which relies on risk transfer, Takaful participants contribute to a collective pool to protect one another against loss.

Ibrahim M. Abdirahman, chairman of Salaam Bank Limited (Uganda), lauded Museveni for supporting inclusive financial policies. He said the firm aims to bridge a critical gap in a country where insurance penetration remains below 1 percent.

Abdirahman said a significant portion of the population has historically avoided traditional financial services due to religious or ethical objections to interest and uncertainty. He added that the bank’s robust balance sheet proves that ethical, Islamic-based finance is resilient within the Ugandan market.

The Takaful model prohibits interest (riba), excessive uncertainty (gharar) and gambling (maisir).

Tamini Insurance Group CEO Mohamed Bahdon commended the government and the Insurance Regulatory Authority for licensing Tamini Insurance. Bahdon said the license legalizes a new form of social security rooted in the ethical principle of Kafalah, or mutual protection and solidarity.

“Two years ago — almost to this very day — Your Excellency stood and launched Salaam Bank Limited as Uganda’s first ethical bank,” Bahdon said. “That was a historical leap for the Muslim community. In just two years, Salaam Bank welcomed and serviced thousands of Ugandans who previously felt excluded from the conventional financial system.”

Bahdon told the president that banking and insurance are the twin pillars of any modern economy.

“Salaam Bank provides the ethical tools for wealth creation. Tamini General Insurance provides the ethical shield to protect that wealth,” he said.

He said the sister companies under the Salaam Group offer Uganda an integrated financial ecosystem that enables growth for individuals and businesses. This system is built for producers, traders and consumers alike.

“A farmer who accesses Halal financing from Salaam Bank to grow his crop can now insure that crop through Tamini,” Bahdon said. “This will result in Uganda’s economic transformation from a consuming nation into a producing nation, all in line with the vision set by Your Excellency.”

The CEO outlined three operational pillars for the Ugandan market: ethical investment, where premiums are channeled toward socially responsible ventures; transparent oversight governed by a Shari’ah Advisory Board; and collective participation.

“Your Excellency, the Salaam Group is today the fastest growing conglomerate in Africa. And we carry with us a philosophy that guides every decision we make — African money must be invested in Africa. For too long, the wealth generated on this continent has flowed outward, enriching others while our own communities remain underserved.

We believe in African solutions for African needs. Uganda is not just a market to us — it is home, and we are here to build it,” he said.

IRA licensed the Tamini Group following the legislative evolution authorizing Shari’ah-compliant financial services.

Tamini is a member of the Salaam Group, an ethical finance conglomerate with operations in Djibouti, Kenya, Malaysia and Uganda.

IRA Chief Executive Ibrahim Lubega Kaddunabbi said the model’s emphasis on fairness and transparency appeals to a demographic beyond the Muslim community.

Under Sharia-compliant principles, known as Takaful, Tamini will operate without interest-based dealings, gambling or investments in Haram ventures.

Kaddunabbi noted that while Takaful remains nascent in Africa, it is a rapidly expanding sector.

The global market, valued at $36.6 billion in 2024, is projected to reach $75.3 billion by 2033.

The introduction of Takaful comes amid significant growth in Uganda’s broader insurance sector.

Kaddunabbi reported that gross underwritten premiums reached approximately 2 trillion shillings in 2025, up from 1.1 trillion shillings in 2021 and 240 billion shillings in 2020.

“We remain optimistic that the introduction of Takaful will broaden access to insurance services, enhance financial inclusion and drive sustained growth across the nation,” Kaddunabbi said.

The IRA chief also called for the immediate implementation of the National Health Insurance Scheme. Currently at the cabinet level, the scheme is intended to reduce out-of-pocket medical costs and stimulate private sector investment in health care.

Under the Mudaraba profit-sharing model used by the firm, management retains 30 percent of the fund as an operational fee, while the remainder stays in the pool. When no risks are registered, the surplus is invested in Sharia-compliant ventures, with profits shared among participants.

The introduction of Takaful aligns Uganda with global financial markets in the United Kingdom, South Africa and Singapore. Beyond insurance and banking, the Capital Markets Authority is advancing plans to introduce Sukuk, or Islamic bonds, to further diversify Uganda’s financial instruments.

Those in attendance included Salaam Group CEO Mohamed Ahmed, Salaam African Bank Djibouti CEO Jamaa Hersi and Salaam Bank Uganda Chairman Ibrahim Abdirahman.