Ugandan President Yoweri Kaguta Museveni has officially launched Tamini General Insurance, the country’s first Shariah-compliant insurance company, in a move authorities say will widen financial inclusion and deepen the East African nation’s evolving Islamic finance sector.
The ceremony, held in Kampala, marked what government officials described as a “historic step” in diversifying Uganda’s financial services industry, particularly for Muslims who have long avoided conventional insurance products due to religious concerns.
Tamini General Insurance will operate under the Islamic Takaful model, which is based on mutual risk-sharing rather than the traditional profit-driven insurance structure. Under Takaful principles, policyholders contribute to a common fund that is used to compensate members who suffer losses, in line with Islamic rules prohibiting interest and excessive uncertainty.
Speaking at the launch, Museveni said the introduction of Islamic insurance would strengthen economic participation and encourage more Ugandans to safeguard their businesses and assets.
“Insurance is about planning for risk and protecting wealth,” Museveni said, urging citizens to embrace the new option as part of broader efforts to modernise Uganda’s economy.
Tamini is affiliated with the Salaam Group, which also operates Salaam Bank, Uganda’s first fully-fledged Islamic bank. The bank was launched following amendments to financial laws that paved the way for Islamic banking services in the country.
Uganda’s insurance penetration remains low compared with global averages, with many small businesses and farmers operating without formal risk protection. Analysts say the arrival of a Shariah-compliant insurer could help tap into underserved segments of the population and boost uptake.
Industry officials argue that the Islamic insurance model may appeal not only to Muslims but also to customers attracted by its ethical investment approach, transparency requirements and emphasis on shared responsibility.
The launch comes as Uganda seeks to broaden its financial base and reduce poverty through increased access to credit, savings and risk management tools. The government has in recent years promoted financial inclusion initiatives targeting rural communities and small-scale entrepreneurs.
Islamic finance has been expanding steadily across Africa, with countries such as Kenya, Nigeria and South Africa introducing Shariah-compliant banking windows and products to cater to growing demand.
Uganda’s move reflects a broader trend in sub-Saharan Africa, where policymakers are exploring alternative financial instruments to mobilise domestic savings and attract foreign investment from Middle Eastern markets.
Officials at the event said Tamini would offer a range of general insurance products including motor, property and business coverage structured according to Islamic guidelines.
The company’s leadership said it aims to build trust in the sector through strict governance and oversight by a Shariah advisory board to ensure compliance with religious principles.
Religious leaders attending the launch welcomed the development, saying it fills a long-standing gap for Muslims who wished to insure their assets without compromising their faith.
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For Museveni’s government, the milestone underscores its strategy of positioning Uganda as an open and diversified economy capable of accommodating different financial systems within its regulatory framework.
While challenges remain including public awareness and competition from established conventional insurers analysts say the success of Tamini could signal a turning point for Uganda’s insurance market.
If widely adopted, the new firm may not only broaden insurance penetration but also strengthen confidence in the country’s broader financial reforms.
As Uganda continues to modernise its financial architecture, the debut of its first Islamic insurance company marks a symbolic and practical expansion of choice in a sector long dominated by conventional models and a new chapter in the country’s evolving economic landscape.
