Museveni Launches Uganda’s First Islamic Insurance Firm

By Peterson Hiirya

Kampala, Uganda – President Yoweri Museveni on Tuesday, March 3, launched Tamini General Insurance, marking Uganda’s first Sharia-compliant insurance company and a major expansion of the country’s Islamic financial ecosystem.

The launch, held during an Iftar dinner organized by the Office of the National Chairman, coincided with efforts to promote financial inclusion and ethical investment.

Tamini, a subsidiary of the Salaam Group, follows the 2024 debut of Salaam Bank, Uganda’s first Islamic bank, and operates under the Takaful model, which emphasizes mutual cooperation, shared responsibility, and ethical finance. Unlike conventional insurance, Takaful participants contribute to a collective pool to protect one another against loss, with strict adherence to Sharia principles prohibiting interest (riba), excessive uncertainty (gharar), and gambling (maisir).

President Museveni commended Salaam Group for diversifying the financial sector and promoting inclusive growth. “Salaam Bank and Tamini, you are welcome to Uganda. Uganda is a growing market with over 45 million people.

You are in Uganda at the right time,” he said. He urged the Muslim community to use the Takaful model to engage in income-generating activities and eliminate poverty. The president highlighted that through initiatives like Operation Wealth Creation, at least 70% of Ugandans have entered the money economy, and the new services will help the remaining 30% participate.

Ibrahim M. Abdirahman, chairman of Salaam Bank Uganda, lauded Museveni for supporting inclusive financial policies and emphasized that Tamini bridges a critical gap in a country where insurance penetration remains below 1%.

He explained that many citizens historically avoided conventional financial services due to religious or ethical objections to interest and uncertainty, and noted that the bank’s balance sheet demonstrates the viability of Islamic finance in Uganda.

Mohamed Bahdon, CEO of Tamini Insurance Group, thanked the government and the Insurance Regulatory Authority (IRA) for licensing the company. He explained that Takaful provides a form of social security based on Kafalah, or mutual protection. “Two years ago, Your Excellency launched Salaam Bank as Uganda’s first ethical bank.

Today, Tamini offers the ethical shield to protect that wealth,” he said. Bahdon highlighted that the integrated financial ecosystem of Salaam Bank and Tamini enables individuals and businesses to both generate and safeguard wealth. He cited the example of farmers accessing Halal financing to grow crops and insuring them through Tamini, contributing to Uganda’s transformation from a consuming nation to a producing nation.

Tamini will operate on three pillars: ethical investment, transparent oversight through a Sharia Advisory Board, and collective participation. Bahdon stressed that the Salaam Group’s philosophy is rooted in African solutions for African needs, ensuring that locally generated wealth is reinvested in Africa. The group has operations in Uganda, Kenya, Malaysia, and Djibouti.

IRA CEO Ibrahim Lubega Kaddunabbi emphasized that Takaful’s focus on fairness and transparency appeals to a broad demographic beyond the Muslim community. He noted that Uganda’s insurance sector has grown significantly, with gross underwritten premiums reaching approximately 2 trillion shillings in 2025, up from 1.1 trillion in 2021.

The introduction of Takaful is expected to further enhance financial inclusion and strengthen the sector. Lubega also called for the immediate implementation of the National Health Insurance Scheme, aimed at reducing out-of-pocket medical costs and stimulating private sector investment.

Tamini will apply the Mudaraba profit-sharing model, where management retains 30% of the fund as operational fees, and the remainder stays in the pool. Surpluses are invested in Sharia-compliant ventures, with profits shared among participants.

The launch positions Uganda alongside countries like the United Kingdom, South Africa, and Singapore in expanding Sharia-compliant financial services. Plans by the Capital Markets Authority to introduce Sukuk, or Islamic bonds, will further diversify the nation’s financial instruments.

Among those attending the event were Salaam Group CEO Mohamed Ahmed, Salaam African Bank Djibouti CEO Jamaa Hersi, and Salaam Bank Uganda Chairman Ibrahim Abdirahman. The launch marks a major milestone for Uganda’s financial sector, promoting ethical, inclusive, and sustainable financial services through Islamic insurance