The Retakaful Window was launched in 2013. Kenya Re is a composite Retakaful operator offering Retakaful support on proportional and non-proportional basis for treaty as well as facultative business in Africa, Middle East and Asia.
Kenya Re becomes the first local company to launch a Retakaful window. This move falls within the corporation's core strategic areas of business development which will see it penetrate new markets, expand existing markets and develop new products. Retakaful business is expected to take advantage of the rapid growth of Islamic finance market in the region
Retakaful will guide Kenya Re's development strategy into new markets and products in Africa, Middle East-and Asia where it operates in 170 companies over 47 countries. The new business was started against the backdrop of a growing Muslim population in Kenya.
Re-Takaful, an alternative to conventional reinsurance, is an Islamic insurance concept founded on the cooperative principle where policyholders pool resources to help each other in times of need.
Under this regime, funds and operations of shareholders are separated from those of policyholders in tandem with Sharia, Islamic religious law which advocates for individuals to cooperate and protect each other.
In 2006, the number of Takaful operators stood at 80 with 120 Takaful windows and 12 Retakaful providers translating to a cumulative premium income of up to Sh255 billion (three billion dollars).
By 2010, Takaful operators had increased to 168, Retakaful windows to 200 and Retakaful providers to 20 which generated Sh468 billion (5.5 billion dollars), marking an 84 per cent increase in premium income.
In 2012, Re-Takaful premium totalled Sh96 million and the underwriter projects a 10 per cent growth (Sh106) by the end of the year.
Sharia Supervisory Board, an oversight body, has been put in place comprising of eminent personalities wisely selected from among Muslim scholars and the Muslim community.
The four-member board is mandated to guide, monitor and supervise the Re-Takaful business and ensure compliance with Sharia rules and principles.