Incentives 'would boost take-up of sharia-based insurance in Kenya'

Nov 05, 2012

Authorities in Kenya are under pressure to help people take up Islamic finance options to people in the African nation.

Authorities in Kenya have been urged to help people take up Islamic finance options to people in the African nation.

According to Takaful Insurance, the level of poverty among its "target communities" are excessively high at the moment, the Star reports.

However, the organisation believes offering people in the Muslim community incentives to take out sharia-based insurance products could be a positive step.

Hassan Bashir, chief executive of Takaful Insurance in Kenya, believes this would open up its Micro-Takaful mechanism, which is designed to offer affordable protection to low earners, to more people.

"Micro-Takaful offers a great opportunity to make a difference in the society given that the low level of insurance penetration in Kenya is at three per cent," he commented.

Mr Bashire added that the take-up of these options among less affluent people has been inhibited by a number of factors, such as strict licensing rules for insurance agencies in the country.

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