Kenya: New takaful regulations expected to be issued by year end
Source: Middle East Insurance Review | Sep 2018
The Insurance Regulatory Authority (IRA) plans to publish new regulations governing Islamic insurance before the end of this year. They will provide for the licensing and supervision of takaful in order to encourage international investment in the sector.
The Authority said it has finished drafting those regulations and awaits the Treasury’s approval, reported Kenya Broadcasting Corporation.
Takaful Insurance of Africa is currently the only shariah-compliant insurer in the country. The firm entered the Kenyan market in 2010 after receiving the go-ahead from the IRA. The market is currently served by more than 45 conventional insurers.
The IRA revealed that four local companies have submitted applications for licences to set up Islamic insurance operations. One of the applicants is seeking to offer the services exclusively, while three are eyeing operations through an Islamic window. The IRA did not name the four companies.
On the sidelines of a retakaful conference in Nairobi, Mr Kalai Musee, IRA manager in charge of supervision, said the delay in rolling out proposed new regulations for takaful has stalled the issuance of the licences.
Takaful in Kenya is expected to post close to KES2bn ($20m) worth of business this year, and is growing at 20% annually. M
KES100 = $1