Uganda has entered the Islamic finance space with the launch of Tamini General Insurance, the country’s first Sharia-compliant insurance company, unveiled by President Yoweri Museveni on Tuesday.
Speaking during an Iftar dinner in Lugogo organised by Ms Namyalo Uzeiye and the NRM Office of the National Chairman, Museveni described the takaful model as both culturally familiar and economically transformative. He said its structure — built on mutual support, risk-sharing and interest-free principles — aligns closely with Uganda’s traditional “omukwato” communal system.
“This is not something strange; it is our traditional way. Borrow, but borrow for production, not for consumption,” Museveni said, stressing that the initiative is designed to benefit ordinary Ugandans, particularly low-income earners.
Tamini operates under Salaam Group in partnership with Salaam Bank, offering insurance products structured in accordance with Islamic law. Under the takaful system, members contribute to a pooled fund used to compensate participants who suffer losses, promoting shared responsibility rather than conventional profit-driven underwriting.
The event also spotlighted a UGX 20 billion government fund earmarked for Muslim women’s SACCOs, reinforcing broader efforts to expand access to capital and formal financial services.
The launch marks a significant milestone for Uganda’s financial sector, where insurance penetration remains relatively low. By introducing Sharia-compliant coverage, Tamini aims to tap into underserved markets while advancing financial inclusion and ethical finance.
With growing demand for alternative banking and insurance solutions, industry players view the development as a potential catalyst for wider adoption of Islamic finance products across the country.
