Determinants of uptake of Islamic insurance amongst Eastleigh business community in Kenya
This study provides an exploratory insight on factors that determine the uptake of Islamic Insurance (takaful) amongst the business community in Eastleigh, Nairobi, Kenya. Specifically the determinants of takaful were organized along the following key themes: Business specific determinants, perceptions of conventional insurance and takaful Characteristics. Targeting the Muslim business community at Eastleigh in Nairobi, the study adopted a purposive sampling approach, which entailed selection of respondents conversant with Islamic Insurance. Primary data was collected by means of questionnaires which were both open and closed ended. The data was analyzed using descriptive and inferential statistics: t-statistics, correlations and regression using SPSS software. The findings of the study suggest that Shariah compliance of Islamic Insurance positively influences takaful uptake. Perceptions regarding conventional insurance also influence takaful uptake. Perception that conventional insurance firms are cons also positively influenced uptake of Islamic Insurance. Perception that conventional insurance is a necessity also influences uptake of Islamic Insurance. Current experience levels with conventional insurance did not have a significant influence on takaful uptake. The study recommends that takaful markets itself as a flexible and Shariah compliant product in order to gain increased acceptance. Additionally, knowledge and importance of insurance should be increased for takaful and conventional insurance to gain prominence.