FACTORS INFLUENCING THE GROWTH OF ISLAMIC INSURANCE IN KENYA: A CASE OF TAKAFUL INSURANCE OF AFRICA

Abstract

The study sought to examine the factors that influenced the growth of Islamic insurance in Kenya, with key focus on Takaful Insurance of Africa. The study's main purpose was to determine the factors that were driving the rise of Islamic insurance in Kenya. The study used a descriptive survey research approach, in which all of Africa's Takaful Insurance employees were included, and data was acquired from primary sources via interviews and questionnaires. The target population constituted of 250 members and the sample size was 154 respondents selected from African Takaful Insurance companies. Both descriptive and inferential statistics were used to analyze the data. The study's findings were expected to make a substantial contribution to the literature on Islamic insurance in Kenya, a relatively new concept in Kenya's insurance business. The study found that the three aspects of regulatory framework, consumer awareness and product innovation had a combined significant effect on the expansion of Islamic insurance in Kenya, according to the significant F statistic. Further the study found that the legal environment, client awareness, and product innovation all play a role in the expansion of Islamic insurance in Kenya. According to the study, a solid regulatory framework will help Islamic insurance thrive. The study also found that increasing client knowledge of Islamic insurance products and practices will help the sub-sector flourish. The study also found that constant product and process innovation would help Kenyan Islamic insurance thrive. The following recommendations were reached from the study: there is a need for a complete examination of the three factors highlighted as drivers of Islamic insurance growth in Kenya by this study. Regarding the regulatory framework, the study recommended that the Insurance Regulatory Authority (IRA) relaxes the entry requirements into his sub-sector. Regarding customer awareness, the study recommended that the players should do more in terms of allocating more budget towards educating the public about the modus operandi of Islamic insurance and the available products. Regarding product and process innovation, Islamic insurance providers should continually engage in product and process innovation to continue churning out products that are most suitable to the emerging and evolving customer needs. In conclusion, this research was a case study of Takaful Africa. It is recommended that a further study could be done involving all the providers of Islamic insurance in the country.

Key Words: Customer Awareness, Insurance Regulatory Framework, Islamic Insurance, Insurance Innovation

CITATION:  Gindole, A., Omwenga, J. Q., & Njeru, A. (2022). Factors influencing the growth of Islamic insurance in Kenya: A case of Takaful Insurance of Africa. The Strategic Journal of Business & Change Management, 9 (2), 98 – 106.