• 09 Jul

    Four companies seek Islamic insurance licence

    Four undisclosed local companies have submitted applications to the Insurance Regulatory Authority (IRA) for licences to set up Islamic-based insurance operations (Takaful), the regulator said Tuesday.

    One of the applicants is seeking to offer the services exclusively while three are eyeing operations through an Islamic window.

    “We have received applications from four firms,” said Kalai Musee IRA manager in charge of supervision on Tuesday.

    Mr Musee, however, said delay in rolling out earlier proposed regulations targeting Islamic-based insurance or Takaful as Kenya positions itself as a regional Islamic financial hub had stalled issuance of the licences.

    “We are hopeful that by end of this year we shall have the regulations. They are with the Treasury,” he said.

    The regulations are aimed at guiding the conduct of the sector.

    They follow the enactment of the Insurance (Amendment) Act 2016, which came into force in January 1, last year.

    The new law provides for the licensing and regulation of Takaful insurance business to encourage international investment in the sector.

    Takaful Insurance of Africa is currently the only Sharia-compliant insurer in the country.

    The firm entered the Kenyan market in 2010 after receiving the go-ahead from the IRA, which required the it to comply with the Insurance Act before joining the market currently served by more than 45 conventional insurance companies.

     

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