Museveni launches Uganda's first Islamic insurance provider

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Uganda has launched its first Islamic insurance company, joining the league of Kenya and Djibouti, which have halal insurance services.

Tamini is a sister company to Salaam Bank, which was launched by President Museveni in 2024 in the presence of Mahmoud Ali Youssouf, chairperson of the African Union Commission.

The Salaam Group already operates Takaful Africa in Kenya and Tamini in Djibouti, with the Ugandan venture powered by the same platform.

Speaking during the launch on Tuesday, Museveni urged the Muslim community to invest in commercially viable ventures rather than consumptive spending.

“Insurance is about preparing so that in case anything goes wrong, you have a backup. When you borrow, you invest, but what if things do not go as planned? I thank Tamini Insurance for completing the cycle,” he said.

The launch took place at Millennium Park in Lugogo, Kampala, during an Iftar dinner organised by the Senior Presidential Advisor on Political Affairs and Head of the NRM National Chairman’s Office, Hajjat Hadijah Namyalo.

“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.

Museveni also praised the Salaam Group for extending inclusive financial services to both low- and middle-income earners, describing its operations as a comprehensive financial ecosystem offering both financing and insurance solutions.

Mr Ibrahim M. Abdirahman, chairman of Salaam Bank Limited (Uganda), said the bank had made notable gains within just two years of operation. “We have welcomed thousands of customers who previously felt excluded from the formal banking system. We have deployed billions of shillings in halal financing towards agro-processing, agriculture, trade, real estate and manufacturing. We have also maintained a robust balance sheet, proving that Islamic banking is not only ethical but also sustainable and resilient,” he said.

Mr Mohamed Bahdon, Group CEO of Tamini Insurance, outlined three operational pillars guiding the firm’s entry into the Ugandan market: ethical investment, transparent oversight and collective participation, all aimed at advancing financial inclusion.

He noted that Islamic insurance would offer affordable cover and help reshape the country’s insurance landscape while creating a new ecosystem aligned with Uganda’s Vision 2040. “A farmer who accesses halal financing from Salaam Bank to grow crops can now insure that crop through Tamini,” Bahdon said. “This will help transform Uganda’s economy from a consuming nation into a producing nation.”

President Museveni also said the government is committed to implementing interest-free wealth creation initiatives such as the Parish Development Model (PDM). He explained that the six per cent annual charge on the programme is meant to control inflation and maintain stability of the fund.

He urged the Muslim community to take advantage of such government initiatives. “We should work to eliminate poverty by getting everyone out of poverty. PDM will help ensure the remaining 30 per cent of Ugandans also move out of poverty,” he said.

The President also directed PDM management committees to adopt a matrilineal approach when selecting beneficiaries of the funds.

Meanwhile, the Chief Executive Officer of the Insurance Regulatory Authority of Uganda, Alhaji Ibrahim Kaddunabbi Lubega, said Uganda’s insurance sector has grown to more than Sh2 trillion, with further expansion expected following the introduction of sharia-compliant insurance by Tamini.