Museveni urges Muslim community to use Islamic finance for poverty eradication

2026-03-03 - 20:29

KAMPALA — President Yoweri Museveni has called on the Muslim community to embrace Islamic finance as a primary tool for poverty eradication, speaking at the launch of Uganda’s first Sharia-compliant insurance firm. The president inaugurated Tamini General Insurance, a subsidiary of the Salaam Group, during an Iftar dinner on Tuesday. He said the arrival of the Takaful model completes a necessary circle of financial inclusion that will allow more citizens to enter the formal economy. “We should work to eliminate poverty by getting everyone out of poverty,” Museveni said. “By 2013, only 32% was the only portion in the money economy. Through Operation Wealth Creation, at least 70% have entered the money economy. PDM will help to ensure the remaining 30% also gets out of poverty.” The president specifically urged the Muslim community to use these ethical financial models for personal growth and social economic transformation. He highlighted livestock and coffee farming as key areas where Islamic banking and insurance can provide the necessary capital and protection. “Salaam Bank and Tamini, you are welcome to Uganda. Uganda is a growing market with over 45 million people. The population will reach 100 million by 2050. You are in Uganda at the right time,” he told the group’s leadership. The event was attended by Salaam Group CEO Mohamed Ahmed, Salaam African Bank Djibouti CEO Jamaa Hersi and Salaam Bank Uganda Chairman Ibrahim Abdirahman. Abdirahman noted that a significant portion of the population has historically avoided traditional financial services due to religious objections to interest. He said the firm aims to bridge this gap in a country where insurance penetration remains below 1 percent. Tamini Insurance Group CEO Mohamed Bahdon explained that the Takaful model provides an “ethical shield” to protect the wealth created through Islamic banking. “A farmer who accesses Halal financing from Salaam Bank to grow his crop can now insure that crop through Tamini,” Bahdon said. “This will result in Uganda’s economic transformation from a consuming nation into a producing nation.” Tamini General Insurance CEO Mohamed Bahdon speaks during the launch of Uganda’s first Sharia-compliant insurance firm in Kampala on Tuesday The Insurance Regulatory Authority of Uganda licensed the firm following 2023 legislative changes that legalized Sharia-compliant services. Under the Takaful system, participants contribute to a collective pool to protect one another against loss, rather than transferring risk to a corporation for a fee. IRA Chief Executive Ibrahim Lubega Kaddunabbi said the model’s focus on fairness and transparency makes it an attractive option for all Ugandans. He noted that gross underwritten premiums in the country reached approximately 2 trillion shillings in 2025. Islamic scholars, including Sheikh Hafithu Walusimbi of the Islamic University in Uganda, welcomed the development. Walusimbi noted that unlike conventional insurance, Takaful ensures participants remain part of any excess pool of funds if no risks occur. Uganda now joins a growing list of global markets, including the United Kingdom and Singapore, that offer these diversified financial instruments.