Determinants of uptake of Islamic insurance amongst Eastleigh business community in Kenya
Date
2012-08
Authors
Mohamad, Ahmed A.
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
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.
Description
A Dissertation Submitted to Strathmore Business School in Partial Fulfilment of the Master of Business Administration (MBA) Degree
Keywords
Islamic insurance, Eastleigh, Kenya