The Central Bank of Somalia (CBS) has announced the formal commencement of the licensing process for takaful service providers, following the enactment of the National Takaful Law in May 2025, said the Bank in a press release on 13 July.
The Licensing and Supervision Department of CBS held a workshop on 2 July 2025 for all registered takaful operators to introduce and operationalise key regulatory instruments essential to the formalisation and effective oversight of Somalia’s takaful sector.
Takaful companies previously operated under a basic registration regime, with limited regulatory and supervisory oversight.
The newly issued regulations mark a major step forward in strengthening consumer protection, promoting sectoral stability, and building public confidence in takaful services across Somalia, said the press release.
The CBS has prioritised the implementation of three foundational regulations endorsed by its board of directors in May 2025, which include licensing, financial reporting, and capital adequacy and solvency regulations.
These regulations, particularly those related to licensing and prudential standards, aim to safeguard the soundness and sustainability of the takaful industry, ensuring its alignment with international best practices while remaining compliant with Shariah principles.
Effective 6 June 2025, all takaful firms operating in Somalia have been required to apply for a licence within a six-month window, in accordance with the new regulatory framework.
The announcement added that CBS encourages all firms to begin the application process promptly to ensure a smooth transition to the formal licensing regime. “CBS reaffirms its commitment to working closely with takaful firms throughout the licensing process and beyond, offering guidance and support to promote full compliance and the healthy development of the sector.”