In Kenya, Islamic insurance has been available since 2010 through Takaful Insurance of Africa, and the Insurance Regulatory Authority has governed the business under takaful rules in force since June 2015, which require ring-fenced funds, separate accounts and a sharia supervisory council.
A Kenyan market where takaful remains a niche
With more than 45 conventional insurers, the Kenyan market is large, yet takaful remains marginal within it. Takaful contributions were expected to reach around 2 billion shillings, roughly 20 million dollars, in 2018, with annual growth close to 20 percent.
The Insurance Regulatory Authority, sole supervisor
The Insurance Regulatory Authority (IRA) was set up in 2006 through an amendment to the Insurance Act, Chapter 487, passed in 1985. As the only regulator and supervisor of the sector, it is where you check the licence of any insurer selling takaful.
The takaful rules issued in May 2015
Dated 6 May 2015, the IRA takaful rules came into force on 1 June 2015. Operators already in business had until 31 December 2015 to comply. They apply to every insurer registered under the Insurance Act that carries on takaful business.
Ring-fenced funds and separate accounts
The 2015 rules require strict separation between takaful and conventional accounts, as well as ring-fencing of participants' funds. Contributions therefore cannot pay claims from the conventional book, a principle explained in our page on the takaful participants' fund.
Surplus, charges and the sharia supervisory council
The Kenyan rules regulate how the underwriting surplus is distributed and which charges the operator may take from the fund. They also require a Shari'ah Supervisory Council to approve products and investments. Check the distributable takaful surplus clause in every policy.
Takaful Insurance of Africa, the established operator
Takaful Insurance of Africa has operated since 2010 under an IRA licence. In 2018 it was described as the first and only sharia-compliant insurer in the country. No other operator or window has been confirmed by name since then, so independent checks remain essential.
Licensing held back by the Treasury
In 2018, a fuller set of draft rules covering takaful licensing and supervision had been finalised but was awaiting approval from the National Treasury. That delay blocked new licences and limited the arrival of competitors to challenge the pioneer operator in the market.
Four applications, three of them Islamic windows
In July 2018, four unnamed local companies were seeking an Islamic licence: one as a full takaful company and three as windows inside a conventional insurer. A window is not a dedicated takaful company, so check the ring-fencing the IRA requires.
A Muslim population of about 15 percent
Muslims make up about 15 percent of Kenyans. In 2015, Islamic finance accounted for nearly 2 percent of banking activity, which creates demand for compatible insurance on murabaha or ijara financing, for example on vehicles and homes bought through Islamic banks.
How Kenya compares with Uganda and Tanzania
According to a May 2026 review, takaful is growing in Kenya, Tanzania and Uganda at different speeds, with public awareness still low. See the takaful market in Tanzania, where Zanzibar is now home to two operators.
Compulsory motor insurance and choosing a policy
In Kenya, as elsewhere, third-party motor liability is required by law. A Muslim driver who cannot find a suitable takaful product must buy compliant conventional cover, then look into scholars' positions on legal necessity before deciding how to proceed.
Pilgrimage and repatriation for families
For Hajj, Umrah or the repatriation of a deceased relative, specialised local cover is poorly documented. Families compare the assistance benefits of a travel policy, the cover provided by the pilgrimage agency and any community funds, all of which should be checked locally.
Buying a takaful policy in Kenya, step by step
- Check the Insurance Regulatory Authority register to confirm the insurer is registered under the Insurance Act and authorised to write takaful.
- Ask whether the product comes from a dedicated takaful company such as Takaful Insurance of Africa or from an Islamic window of a conventional insurer.
- Obtain the names of the Shari'ah Supervisory Council members and the opinion they issued on the product offered.
- Compare the contribution, the charges taken from the fund and the surplus-sharing formula set out in the policy.
- Read the exclusions, excesses and notification deadlines before signing the proposal form.
- If a loss occurs, notify it in writing within the contractual deadline and keep copies of the evidence given to the operator.
What makes up the price of Kenyan takaful cover
| Component | Role | What makes it vary |
|---|---|---|
| Tabarru contribution | Feeds the participants' fund that pays claims | Type of risk, sum insured, claims history |
| Operator charges | Pay for management, regulated by the 2015 IRA rules | Chosen model and level set in the policy |
| Share of investment returns | Rewards the operator if it manages funds under mudaraba | Returns on sharia-approved investments |
| Surplus distribution | Returns part of the excess to participants | Annual underwriting result and distribution rules |
| Excess | Amount borne by the policyholder on a claim | Cover, chosen amount, type of property |
Documents insurers usually request
- Kenyan national ID card, or passport for foreign nationals
- Tax identification number (KRA PIN)
- Recent proof of address
- Vehicle registration certificate (logbook)
- Title deed or lease for a home
- Murabaha or ijara financing agreement if the asset is financed
- Medical questionnaire for family or health cover
Common pitfalls for Kenyan policyholders
- Trusting a halal label without checking for a Shari'ah Supervisory Council, even though the IRA rules have required one since 2015.
- Buying through an intermediary whose insurer is not registered with the Insurance Regulatory Authority.
- Assuming an Islamic window equals a dedicated takaful company without checking account separation and fund ring-fencing.
- Going without third-party motor liability for lack of a takaful product, when it is compulsory to drive.
- Accepting a verbal promise of surplus sharing that does not appear in the written policy conditions.
Your questions about Kenyan takaful
How many takaful insurers operate in Kenya?
In 2018, Takaful Insurance of Africa, active since 2010, was described as the country's only sharia-compliant insurer. Four licence applications were filed that year, but no other company has been confirmed by name since. Check the IRA register for the current list.
What obligations do the 2015 IRA rules impose?
They require separate takaful and conventional accounts, ring-fenced funds, controls on the charges taken and on surplus distribution, and a sharia supervisory council. They apply to every registered insurer that carries on takaful business in the country.
Can a non-Muslim buy a takaful policy in Kenya?
The IRA rules govern the business, not the customer's religion. Nothing in the published texts prevents a non-Muslim from joining the participants' fund, provided they accept the principle of mutual donation and the sharia-related exclusions.
Do scholars accept Kenyan takaful?
The principle of cooperative insurance based on mutual donation is accepted by the International Islamic Fiqh Academy and by AAOIFI. For a specific product, refer to the opinion of the operator's sharia council and, if in doubt, to a scholar you trust.