Author: user user

As Uganda’s insurance sector evolves, a new chapter is unfolding with the introduction of Takaful-an Islamic insurance model rooted in mutual support and inclusivity.

This article explores the benefits and challenges of this model, and its potential impact on individuals and the broader economy.

Takaful holds immense promise for Uganda’s insurance landscape, particularly in addressing financial exclusion. With the right investment in awareness, regulation, and skills development, Uganda can indeed be ready, not just to embrace Takaful, but to lead in inclusive insurance innovation in East Africa.

Once a tool for social cooperation, insurance is coming full circle as Takaful reintroduces community-based risk sharing. But this shift requires more than just policy change. It calls for public education, mindset transformation, and the establishment of a dedicated fund to enhance understanding of Islamic finance.

Takaful operates on the principle of tabarru, where participants contribute to a shared pool, supporting each other in times of need. As Uganda prepares to roll out these products, the question remains: Is the country ready to embrace this model?

When asked if Uganda is ready for Takaful, Dr Twaha Ahmed Kasule, a senior lecturer at the Islamic University in Uganda (IUIU) specialising in Islamic banking, finance, and economics, expressed optimism.

‘Yes, we are ready because the Ugandan government has taken the necessary steps toward legal reforms, which have now been completed,’ he says.

Dr Kasule notes that the legal reforms finalised by the Insurance Regulatory Authority (IRA) will be signed soon. ‘We have trained more than 200 students in Islamic finance and banking at IUIU, which means there is already a foundation of knowledge regarding Islamic insurance in the market,’ he explains.

He emphasizes that companies intending to offer Takaful insurance should establish Shariah committees to ensure compliance with Shariah principles in investments and resource handling. ‘This will broaden the scope of the insurance business. There are always groups that are excluded from traditional insurance, but Takaful can enhance insurance inclusion and improve penetration within the industry,’ he adds.

Alternative way of insuring

As Takaful is a new model, players in the industry must pay attention to several key factors.

Dr Kasule points out that, as an alternative insurance method, companies must understand that they will not own the resources but act as agents for the resource owners. This will require structural reforms and a deep comprehension of operational dynamics.

Furthermore, Shariah governance will be crucial at the company level. Each company will need to have a Shariah committee comprising at least three members to ensure compliance with Shariah regulations.

The business model will also need to adhere strictly to ethical considerations in investments and resource management. While these tasks are significant, they are achievable.

Advantages of Takaful

Dr Kasule notes that while there are many advantages to implementing Takaful, substantial efforts are required to educate the public and industry stakeholders.

‘We are still in the process of educating the market. People will need to learn this alternative method of insurance,’ he states.

He highlights that Takaful can address issues of exclusion.

‘By introducing Takaful, we are promoting insurance inclusion, which parallels inclusion in the banking sector. This will enhance the penetration rate of the insurance industry and create greater employment opportunities, increase premium collections, and facilitate the expansion of the insurance sector in the country,’ he says.

Differences between Takaful and traditional insurance

Unlike traditional models, Takaful prohibits interest (riba), gambling (maysir), and excessive uncertainty (gharar), and requires investments to be made in Shariah-compliant instruments.

Traditional insurance often charges high premiums, one of the factors that have kept insurance penetration in Uganda at less than 1 percent.

However, how does Takaful differ in this aspect?

Kasule explains that premiums in Takaful are not set precisely. Participants in the Takaful system will collectively determine the premiums they can afford.

Since they are the owners of the pool of funds, they come together to support one another. If individuals with limited financial means decide to participate, they will unite to agree on a premium rate that suits their budget. While Takaful companies may provide advice on viable rates, the decision lies with the participants.

‘Takaful takes care of the poor. If those with limited resources can only afford a lower premium, they will collaborate to establish a rate that works for everyone involved,’ Kasule comments.

Mr Bernard Obel, the director of supervision at the Insurance Regulatory Authority of Uganda (IRA), says the Authority is in the advanced stages of licensing the first Takaful insurance service provider.

He emphasizes that the structure allowing policyholders to share in the profits generated by a Takaful insurer at the end of a specified period is a significant advantage of this product.

‘This feature is expected to expand and enhance the insurance market, particularly among the uninsured populace that has been wary of conventional insurance,’ he says.

Takaful is an ethical financial model rooted in the principles of cooperation, shared responsibility, and social solidarity.

It is based on Shariah law which emphasizes fairness, transparency, and ethical investments, distinguishing it from traditional insurance models.

‘Takaful operates as a cooperative system in which participants contribute to a shared pool of funds which are used to support group members in times of need, embodying the principle of collective care,’ he says.

Insurance regulators

Uganda’s insurance sector is growing but remains underdeveloped relative to regional peers.

According to IRA’s latest performance report, the sector recorded Shs1.79 trillion in gross written premiums in 2024, up 12 percent from the previous year.

However, sector penetration remains low, and challenges around trust, awareness, and accessibility persist, especially in rural aeas.

Ms Francesca Kakooza, the director of legal at IRA Uganda, states that as insurance regulators, they are studying the ecosystem and encouraging all insurance players to enhance it.

‘At the IRA, we began this journey three years ago by benchmarking and examining our approach. While Takaful may have a slow start, it will gain momentum,’ Kakooza notes.

She also advocates for the introduction of Takaful windows to attract more clients and promote growth within the insurance sector.

Takaful, in addition to innovations like micro-insurance and bancassurance, can improve this outlook.

Micro-insurance, which targets low-income earners, was the fastest-growing segment in 2024, expanding by 67 percent.

Meanwhile, premiums collected through bancassurance-insurance products sold via banks-rose from Shs142.7 billion in 2022 to Shs179.5 billion in 2023, highlighting its growing importance as a distribution channel.

The ruling National Resistance Movement (NRM) has launched a fresh campaign strategy aimed at reclaiming Kalangala District, one of the districts in central Uganda where it suffered a stinging defeat in the 2021 General Election.

In that poll, the party secured just 28.15 percent (5,275 votes) out of the 35,465 total votes cast, losing both parliamentary seats, the district chairperson seat, and several council positions.

The Opposition National Unity Platform (NUP), riding on fishermen’s frustrations, economic hardships, and divisions within the NRM camp then, swept the islands with 70 percent (13,121 votes). With the 2026 elections approaching, Kalangala District NRM chairperson Sunday Gerald Kayita insists the party has learnt from its mistakes.

‘We understand why we failed last time and have rectified all those mistakes, especially in keeping unity among members,’ Mr Kayita said in an interview on October 1.

He said NRM avoided divisive primaries in the district this time by encouraging internal negotiations among aspirants, resulting in consensus on most positions.

‘Most critical positions emerged unopposed, which created peace within the party. That has allowed candidates to spend more time mobilising support instead of resolving internal conflicts, ‘ he said. He added that the NRM secured 82 percent victory in youth elections and is waiting to swear in nine unopposed district councillors – an outcome he said demonstrates restored confidence in the party.

Mr Farouk Bukenya, who had said he would stand as an Independent after stepping down for Ms Agnes Lunkuse in the race for the district chairperson seat, has also rejoined the party fold. NRM’s spokesperson for Kalangala District, Mr Elly Ntegge Wasajja, said their new campaign strategy places emphasis on service delivery and popularising government projects.

‘Government has done so much in expanding the oil palm project, improved water transport, electricity, water supply, and better roads,’ Mr Ntegge said, adding, ‘We believe once islanders are reminded of all this, they will trust NRM to deliver more.’

However, he admitted that some concerns still remain, especially the delay in tarmacking the Luku-Mulabana Road and the unfulfilled promises to provide a water vessel between Entebbe and Kyamuswa County, as well as a ferry linking the smaller islands to Buggala Main Island. He, however, assured islanders that the government is committed to delivering on all its promises. The party has also set up 30-member committees in all 95 villages, 17 parishes, and seven sub-counties.

Each committee has been assigned to recruit 10 new supporters. If successful, NRM estimates the drive could deliver more than 36,000 votes, surpassing 2021’s total voter turnout. However, Opposition leaders argue that NRM’s renewed efforts are ‘cosmetic’. Kalangala District chairperson Rajab Ssemakula, who is also the NUP flagbearer for Bujjumba County MP seat, dismissed the NRM mobilisation committees as ‘recycled rhetoric.’

‘The government rushed services here only after losing in 2021. That shows people were right to vote for change,’ he said, adding: ‘What residents want is accountability, better health services, improved schools, and transparency in fisheries management,’ he added.

Mr Bambalazaabwe Ssemakula, an analyst, said NRM’s strategy may still face resistance: ‘The NRM remembers its mobilisers only during the election period , but after that,they are neglected. Fishermen have been brutally handled. ‘

According to the Uganda Annual Health Sector Performance Report 2023/24, teenage pregnancy remains the leading killer of girls aged 15-19 years in Uganda, with Busoga Region bearing a disproportionate burden.

Covid-19 lockdowns worsened the situation where young girls no more than 13 years of age became pregnant, leading to increased school dropouts and loss of lives.

In light of that, Jinja District, in partnership with Good Neighbours, a Korean non-governmental organisation, has passed a set of by-laws aimed at tackling the rising cases of teenage pregnancy and child marriage. The new legal measures, passed under Sections 38 and 40 of the Local Government Act, CAP 243, mark a significant step in protecting children’s rights and safeguarding their education and wellbeing.

The by-laws were introduced in a motion by Ms Proscovia Mutibwa, Vice District Chairperson and Leader of Government Business, during a session chaired by Deputy District Speaker, Mr Moses Lwochaza.

They were passed before the Deputy Chief Administrative Officer, Mr Geoffrey Banga Nkurunziza, following recommendations from the District Executive Committee under Minute DEC/70/2025. The by-laws will initially be implemented in the following four town councils: Kakira, Buyengo, Kagoma (formerly Buwenge) and Busedde. The rollout in these areas is expected to serve as a model for broader district-wide adoption in the future.

The framework was developed through a participatory approach that brought together parents, community leaders, educators, religious leaders, and youth representatives. According to district officials, this inclusiveness was key to ensuring that prevention and accountability remain at the heart of the measures.

Teenage pregnancies

Among the key provisions are penalties for perpetrators of child marriage and underage pregnancies, mandatory reporting of suspected cases, and protections for girls who become mothers while still in school.

The by-laws stipulate that any school-going girl who becomes pregnant must be allowed to sit for her examinations and, after delivery, resume her studies. Anyone who denies her this right risks a fine of up to three currency points, imprisonment of up to two months, or both.

Child marriages

On this, the laws categorically prohibit parents, guardians, religious institutions, or cultural leaders from marrying off or presiding over the marriage of a child below 18 years.

Anyone found guilty of engaging in or facilitating such practices will be prosecuted under the Penal Code Act. The by-laws also address defilement cases, placing responsibility on parents, guardians, teachers, school committees, and local authorities to report all incidents to the police. Attempts to settle such cases outside court are now criminal offences.

Child welfare

Beyond marriage and defilement, the regulations cover wider child welfare concerns. They ban harmful child labour, regulate excessive domestic chores, restrict child loitering, enforce curfews, and prevent deliberate school dropout.

Parents who knowingly allow children to abandon school can face fines or jail time. Children who deliberately refuse schooling without justifiable cause will be taken in by police for not more than 12 hours and handed over to probation officers for counselling. Good Neighbours, which has been active in Jinja and the wider Busoga Sub-region, is supporting the enforcement of the laws through awareness campaigns and community outreach.

The NGO’s country office says it will continue working with local leaders to sensitise families and strengthen protection mechanisms for vulnerable children. Speaking after the passing of the laws, district officials emphasised that protecting children is a collective responsibility.

‘We must work together as parents, leaders, and communities to ensure that no child is forced into marriage or denied the chance to complete their education,’ Ms Mutibwa said.

The move has been hailed as a landmark step in the fight against early marriages and teenage pregnancies, issues that have long undermined education and exposed young girls to lifelong challenges.

A 36 kWp solar power generation system with a 13 kVA standby generator for cloudy days has been installed at Buvuma Health Centre IV by Makerere University, in a move expected to accelerate efficient health service delivery at the facility.

Officials say the project is a game changer for one of Uganda’s most hard-to-reach health centres, which has long grappled with unreliable electricity, unsafe water, and poor cold storage for medicines and vaccines.

Through the Sustainable Off-grid Solutions for Pharmacies and Hospitals in Africa (SophiA) Project, Makerere University officially handed over the modern solar-powered water and energy facility to Buvuma Health Centre IV on October 6.

The health centre serves thousands of island residents but has for years operated under difficult conditions – limited electricity, no reliable cold room for medicines, and no modern neonatal unit to care for premature babies.

To address these challenges, Makerere University partnered with 13 organisations from Europe and Africa under the SophiA Project, funded by the European Union (Project: 101036836 -SophiA-H2020-LC-GD-2-3-2020).

The project, which began in October 2021 and concluded in September 2025, was piloted in four African countries, Burkina Faso, Cameroon, Malawi, and Uganda, to provide sustainable off-grid energy solutions for rural and remote health facilities.

According to officials, the new SophiA system at Buvuma Health Centre IV will supply 36 kWp of solar power, backed by a 13 kVA generator for cloudy days. It also provides safe drinking water for patients and staff, hot water and steam for bathing, sterilization, and cooking, cooling systems for medicine storage (+5°C), blood plasma (-30°C), and sensitive vaccines such as Covid-19 and Ebola, as well as ice production and Scheffler solar shields for outdoor cooking.

Assoc. Prof. Nicholas Kiggundu, the project’s Principal Investigator from Makerere University’s Department of Agricultural and Biosystems Engineering, said the SophiA system’s uniqueness lies in its containerized design, which integrates multiple energy and water systems into a single modular unit.

‘This container houses power generation, water purification through ultrafiltration, cooling and refrigeration using natural refrigerants, de-ionized water production, and steam generation for sterilization, all managed through a computerized SCADA system,’ he said.

The Supervised Control and Data Acquisition (SCADA) system monitors and controls all operations, ensuring efficiency, safety, and data-driven decision-making.

‘To enhance safety when handling flammable natural refrigerants like propane (R290), the compressor and condenser are installed in a separate ventilated compartment outside the main container,’ he added.

Dr Dyanabo Remigio, the Senior Medical Officer and in charge of Buvuma Health Centre IV, said the project has already transformed the hospital’s operations.

‘We can now store blood and vaccines safely, sterilize equipment, and provide clean drinking water, all powered by solar energy. Before SophiA, we struggled to operate critical units like the laboratory and neonatal ward due to lack of electricity,’ he said.

Mr Waswa Adrian Ddungu, the District Chairperson, thanked Makerere University and the European Union for prioritizing Buvuma.

‘This facility now gives us hope. We pledge to maintain and protect this investment so it can continue to serve our people for generations,’ he said.

Mr Mboge Issa, the Chief Administrative Officer (CAO) of Buvuma District, announced the formation of a local supervisory committee to ensure the smooth operation and sustainability of the facility.

Makerere University Vice Chancellor Prof Barnabas Nawangwe, in a speech read by Prof Julia Kigozi, the Dean of the School of Food Technology, Nutrition and Bio-Engineering, said the SophiA Project reflects Makerere’s vision as a research-led institution contributing to Africa’s sustainable development.

‘We are here today to celebrate a landmark innovation that strengthens health systems in remote areas,’ said Prof. Kigozi.

‘The SophiA project is timely, given that many African health facilities still operate without reliable electricity or clean water. This project brings real, life-changing solutions.’

She noted that only 28 percent of health facilities in Sub-Saharan Africa have reliable electricity, while Uganda’s rural health centres continue to experience frequent blackouts and low voltage, challenges the SophiA system directly addresses.

Prof Kigozi also revealed that Makerere University has implemented a similar project at Mua Mission Hospital in Dedza, Malawi, and that both installations will serve as learning laboratories for Makerere students and researchers across disciplines.

With just two weeks to the parliamentary nominations, Democratic Front (DF) president Mathias Mpuuga has declared his intention to contest for a fourth term as Nyendo-Mukungwe Member of Parliament in the 2026 general elections, while setting his sights on a future presidential bid.

Addressing DF supporters in Masaka on Monday, October 6, Mr Mpuuga, who also serves as the opposition commissioner in Parliament and a former National Unity Platform (NUP) MP, said he will contest under his new party, the DF, to allow himself more time to prepare for a presidential run.

He explained that the DF had directed him to seek another five-year term in Parliament, adding to his 15 years of legislative experience since first joining Parliament in 2011.

‘The party directed me to seek five more years as Nyendo-Mukungwe MP as we prepare for what’s next. Contesting for Uganda’s presidency is not a ritual; I will contest when ready,’ Mr Mpuuga said.

‘Politics is on purpose. When the time comes and I am ready for president, even the dust will stir up because I will be more than ready,’ he added.

Mr Mpuuga accused the NUP leadership of failing to handle internal party matters effectively, saying the intolerance and branding of dissenting members as disloyal forced him and several allies to defect.

He joined NUP during the 2021 elections from the Democratic Party Bloc (DP Bloc), along with other senior politicians who went on to win parliamentary seats on the NUP ticket. However, many of them have since defected to DF.

Mpuuga’s declaration comes after DF opted not to front a presidential candidate for the 2026 elections, sparking public speculation about his political ambitions.

His close associates in Masaka, including Mr Abed Bwanika, who will contest for Kimanya-Kabonera Division MP, and Ms Juliet Nakakande, who is vying for Masaka City Woman MP, have also announced their bids under the DF ticket.

From NUP to DF

Mr Mpuuga, a former key figure in the National Unity Platform (NUP), broke away from the party last year following controversy over a Shs1.7 billion ‘service award’ that he received as former Leader of the Opposition in Parliament.

The award, shared among four parliamentary commissioners, Mr Mpuuga, Ms Prossy Mbabazi Akampurira (Rubanda Woman MP), Ms Esther Afoyochan (Zombo Woman MP), and Mr Solomon Silwanyi (Bukooli Central MP), sparked public outrage after each reportedly pocketed between Shs400 million and Shs500 million.

The NUP leadership summoned Mr Mpuuga to explain his involvement, demanding that he apologize and return the money, citing a breach of the party’s anti-corruption values.

However, he refused, accusing the party of unfair treatment and internal witch-hunts.

Amidst the fallout, Leader of the Opposition Mr Joel Ssenyonyi initiated a move to collect signatures to impeach Mr Mpuuga as opposition commissioner. NUP later attempted to replace him with Mr Francis Zaake, but Parliament rejected the replacement, leaving Mpuuga in the position.

He will now face off with Mr Gyavira Ssebina Lubowa of NUP, Ms Rachael Nakitende of NRM, and other aspirants when nominations for MPs take place on October 23 and 24.

The government is set to issue ‘new and stricter’ guidelines on lead cars and bodyguards, a senior official at the Ministry of Works and Transport (MoWT) has announced. Mr Winstone Katushabe, the commissioner of transport regulation and safety, said the guidelines are meant to address the prevailing challenges of lead cars on roads.

‘Everybody, even those driving private vehicles, is putting sirens on; but, over the next few weeks, communication will come to that effect on the guidelines for how sirens are going to be dealt with and who actually qualifies for a lead car and escort vehicle,’ he said.

‘The government has deemed it important that this should come to an end. A paper has been presented by the minister for the Presidency (Ms Milly Babalanda), and it is supported by the MoWT,’ he added.

Mr Katushabe, who was officiating at a familiarisation tour and sensitisation meeting on the introduction of mandatory motor vehicle inspection in Namanve, Mukono District last Friday, said guidance has been given by Cabinet and the President.

‘I don’t want to pre-empt, but I know that guidelines are going to be issued, and once they are ready, the public will be informed,’ he added.

During a parliamentary sitting in February 2019, then Speaker of Parliament, Ms Rebecca Kadaga, tasked then Internal Affairs minister, Gen Jeje Odongo, to explain why many cars had a ‘right of way’, and who was entitled to lead cars. However, Gen Odongo asked for more time to scrutinise the law before providing a ministerial statement.

During the Friday event, the MoWT announced the start of the new, reduced motor vehicle inspection fees that were revised last year. The announcement comes ahead of mandatory vehicle inspections scheduled to begin before the end of this year, starting with government vehicles. Mr Kharim Kibuuka, the head of motor vehicle inspection at the MoWT, said fees will be significantly lower than those previously charged by Société Générale de Surveillance (SGS).

‘The reason why we drastically reduced the vehicle inspection fees, which were exorbitant, is to ensure that the public is compliant with inspection without raising any complaint or concern that the government intends to fleece the general public,’ he said.

‘The inspection will cover automated checks, visual assessments and advisory notes, while an automated inspection will focus on the front and rear wheels, as well as the suspension system, to ensure vehicle stability,’ he added.

In January, the government officially took over motor vehicle inspection services from SGS, ending years of controversy surrounding the company’s 10-year operations, with an aim of making the process more affordable, and accessible.