IRA Head of Composite Insurers Supervision Mary Nkoimu yesterday said the current Insurance Act is still not appropriate for the growth of the Takaful insurance.
Takaful is an Islamic insurance based on Sharia law.
The Insurance Regulatory Authority (IRA) plans a new set of rules targeting Takaful insurance as Kenya positions itself as a regional Islamic financial hub.
This follows the enactment of the Insurance (Amendment) Act 2016, which came into force on January 1 and provides for the licensing and regulation of Takaful insurance to encourage international investment in the sector.
IRA Head of Composite Insurers Supervision Mary Nkoimu yesterday said the current Insurance Act is still not appropriate for the growth of the Takaful insurance and hence the need for a different set of regulations. “It may not be a parallel act for Takaful but there are those specific regulations, which will apply to Takaful only, so that’s what we are going to touch on,” said Ms Nkoimu during the Kenya Re Takaful and Retakaful conference in Nairobi.
“But where there is no conflict between the operations of Takaful and the current Insurance Act we’ll expect players to comply,” she said.
Takaful is an Islamic insurance based on Sharia law. According to the Islamic Financial Services Board industry stability report 2016, global Islamic financial services reached $1.88 trillion (Sh193.64 trillion) in 2015.
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