Takaful Insurance of Africa, the first fully Shari’ah-compliant insurance company in Kenya, has been licensed and launched in Nairobi.
The company, the first Takaful operator in East Africa, was founded in 2008 and registered by the Kenyan industry regulator, Insurance Regulator Authority, this month. It is backed by the Cooperative Insurance Company of Kenya.
Kenya's population is put at 39 million, out of which more than 10 per cent is Muslim. The potential market for Takaful products is projected to be around 25 per cent of the estimated four million Muslims in the country.
The launch of Takaful Insurance of Africa follows on from the granting of two Islamic banking licenses to Kenyan authorities in 2007 to Gulf African Bank and First Community Bank. The Kenyan insurance market is currently served by more than 45 conventional insurance companies.
In his 2010/2011 Budget speech delivered on 10 June 2010, Kenyan Finance Minister Uhuru Kenyatta had spoken of the ‘need to amend the law to accommodate Islamic banking products by introducing the concept of a return as opposed to interest’ and announced plans to amend the Central Bank of Kenya Act ‘to facilitate Islamic transactions’.
source: CPI Financial