The Insurance Regulatory of Uganda (IRA) has released the long-awaited Insurance (Takaful and Retakaful Regulations), 2025, marking a significant milestone in the country’s efforts to broaden insurance access by offering an alternative to conventional insurance.
The IRA also issued the country’s first licence for a takaful non-life insurance company. According to a public notice issued by the IRA, Tamini General Insurance Uganda has been authorised to conduct Shariah-compliant insurance business in the country.
IRA CEO, Kaddunabbi Ibrahim Lubega, said in a statement that the new regulatory regime guarantees policyholder protection, financial stability, and greater market confidence.
In developing the takaful regulations, the IRA benchmarked African countries that already have Shariah-compliant insurance, including Sudan, Egypt, Kenya, Nigeria, and Senegal.
With the Regulations now in force, the Authority plans to intensify industry training, strengthen supervision of takaful operations, and roll out public awareness campaigns to accelerate adoption.
IRA’s Head of Legal, Francesca Nakaggwa Kakooza, said that the takaful licensing of Tamini General Insurance builds on Uganda’s steady embrace of Shariah-compliant products, following the introduction of Islamic banking in 2018.
In Uganda, takaful was legislated for under the Financial Institutions (Amendment) Act of 2016, which allowed for Islamic insurance and banking.
The global law firm Dentons said in a blog, “Even prior to the passing of the Regulations, Uganda had already embarked on a journey toward embracing Islamic insurance through several notable steps. In 2018, the Government passed the Financial Institutions (Islamic Banking) Regulations to regulate the conduct of Islamic financial business by financial institutions, creating a supportive environment for the emergence of other Shariah-compliant business models, including takaful.
“In 2021, the Government commenced the preparation of dedicated takaful regulations, and in the same year, the Insurance Training College (ITC), which is responsible for training insurance professionals, introduced a module on takaful. In August 2022, the Institute of Certified Public Accountants of Uganda (ICPAU) published the Financial Reporting Guidance for Takaful Operators. In 2024, the Insurance Regulatory Authority of Uganda issued the Takaful and Retakaful Guidelines, 2024 as a stop-gap measure until the appropriate regulations on takaful were enacted. Following the enactment of the Regulations, the Guidelines now serve to illuminate the interpretation and application of the Regulations.” M