The Non- Financial Factors Influencing The Performance of Islamic Insurance In Kenya: A Case Study of Takaful Insurance of Africa

Abstract

It has been two years since the first Islamic insurance began operations in Kenya making the first of its kind in the whole of east and central Africa, although the growth potential and performance of Islamic insurance abroad have been remarkable, in Kenya it has proven either wise hence the study was conducted to determine, what are the non-financial factors influencing the performance of Islamic insurance in Kenya. And the independent variables’ being studied was: legal and regulatory framework, unethical practices while the dependent variable being studied was performance of Islamic insurance.

The first objective of the study was the legal and regulatory framework and out of the secondary findings it was found out that the sharia boards were considered to have a strong authority on the performance of Islamic insurance and also it defines the extents and limits of its operations.

The second objective of the study was, unethical practice has shown that due to the flexibility of the insurance market on allowing intermediaries to plays match makers some of the agents and brokers have used these avenues to exploit customers hence affecting the performance of the insurance company’s.

Keywords: Islamic insurance, Non-financial performance, Takaful