IslamicFinance.de

The first Sharia-compliant insurance company in Kenya has been formed as the race for Islamic cash intensifies.
The firm, which will operate as Gulf Takaful Company Ltd, is being fronted by GulfCap Investments — the principal shareholder in Gulf African Bank.
Under the model, people seeking insurance cover will pay premiums to a collective fund from which payments will be made to members who suffer from the risks covered.
But unlike conventional insurance practice, the new insurance model, known in Islamic parlance as Takaful, is both an investment offering as much as it covers members.
Gulf African Bank will act as the fund manager for the insurance company, earning fees for its services to the insurance scheme.
Analysts say that by introducing Sukuk, the government could diversify the base of investors bidding for government debt papers, given the cash flush investors from the East who have shown interest in Africa as an investment destination.