The Insurance Regulatory Authority plans to publish new regulations governing Islamic based insurance products commonly referred to as Takaful before the end of this year.
The authority says it has finished drafting those regulations and awaiting treasury’s approval.
The Islamic based insurance is expected to register close to two billion shillings worth of business this year.
For more than 10 years Islamic based insurance concept of Takaful has operated without proper legal instruments despite attracting billions of shillings in premiums.
In 2015, the Insurance Regulatory Authority published guidelines on takaful business that was aimed at bringing order into the industry.
IRA Manager in Charge of Supervision Kalai Musee says the new regulations will further boost the industry that has been growing at a rate of 20 percent annually.
The new law will provide for the licensing and regulation of Takaful insurance business in order to encourage international investment in the sector.
Last year the Takaful business registered business worth one billion shillings and it is expected to double this year.
Speaking during a two day Takaful and re-Takaful conference, Musee said the new regulations will not affect the Insurance Act that guides the industry.
Globally, the Takaful industry grew to 1.4 trillion shillings last year with new products rolled out in more than 65 countries.