Court will deliver its ruling on June 29 in the case in which Ibrahim Kaddunabbi Lubega is challenging the Insurance Regulatory Authority against refusal renew his contract, which expired on May 31.
Few developments have shaken the sector as profoundly. The case comes at an institution that, over the past 15 years, has presided over the remarkable rise of an industry that was once barely understood by much of the Ugandan public.
And the battle over the future of former IRA chief executive officer Kaddunabbi will be decided on whether court agrees with his case that he deserves a contract renewal because of his strong sector performance.
Documents filed in court indicate that Kaddunabbi is asking court to stop his exit and secure another five-year term.
But the IRA board insists that his contract expired and that findings from a special Auditor General investigation justified its decision not to recommend him for reappointment.
Why Kaddunabbi wants a new term
His argument is built around what he describes as a strong record of performance during his five-year tenure.
In Kaddunabbi’s court filings, he says he consistently achieved or exceeded his key performance indicators and was regularly rated highly by the board.
Thus, he argues that these assessments gave him a legitimate expectation that he would be considered favourably for another term.
He points to significant growth in Uganda’s insurance sector during his tenure, as documents submitted in support of his application indicate that gross written premiums rose from about Shs1.18 trillion in 2021 to Shs1.76 trillion in 2024, while industry assets and capitalisation also expanded substantially.
The submissions further credit his administration with strengthening regulation, improving risk-based supervision, modernising insurance laws, operationalising the Insurance Appeals Tribunal, and promoting insurance awareness among the public.
Kaddunabbi also argues that he transformed IRA institutionally by expanding staffing levels, attracting international technical support, overseeing the construction of a permanent headquarters in Nakasero, Kampala, securing ISO certification, and strengthening partnerships with regulators and development agencies.
Therefore, according to documents filed on his behalf, these achievements demonstrate that he not only managed IRA but positioned it as a stronger and more credible regulator.
Beyond performance, Kaddunabbi claims the process leading to the board’s decision was flawed.
He contends that the board decided on February 16, 2026, not to recommend him for reappointment without first granting him a hearing, thereby violating principles of fairness and due process.
He also relies on earlier legal advice from the Attorney General, which reportedly concluded that he remained eligible for reappointment under the Insurance Act despite his previous terms in office. At the expiry of his contract, Kaddunabi had been IRA chief executive officer for about 16 years.
Why the board opposes renewal
IRA submissions before court indicate that the decision not to renew Kaddunabbi’s contract was not presented as a dismissal but rather as the outcome of a statutory reappointment process coupled with the natural expiry of his fixed-term contract.
IRA states that Kaddunabbi was appointed on a five-year fixed term running from June 1, 2021, to May 31, 2026.
Before the expiry of that term, the board resolved on February 16, 2026, not to recommend him for reappointment.
Following that decision, the Minister responsible for Finance directed the Auditor General to conduct investigations into matters concerning Kaddunabbi’s conduct and suitability for reappointment.
The submissions further indicate that Kaddunabbi participated in the investigative process and was allowed to respond to the issues raised. After receiving the Auditor General’s findings and considering his responses, the board reconsidered the matter on May 26, 2026.
IRA maintains that these processes formed part of the lawful and statutory considerations relating to his suitability for another term.
Earlier, Kaddunabbi had secured a court order against his removal, but IRA, in its submissions, contended that the interim order issued on May 29 did not have the effect of renewing, extending, or reviving his contract, nor did it create a legal entitlement to continued occupation of the office.
IRA notes that renewal of a chief executive officer’s contract is an executive function governed by a statutory appointment process and not something that can be presumed merely because a challenge to the board’s decision is pending before court.
IRA, therefore, maintains that the decision not to reappoint Kaddunabbi was based on the board’s assessment, concerns regarding his conduct and suitability that were subjected to investigation and review, and the eventual expiry of his fixed-term contract.
It argues that there was no subsisting contractual right capable of preservation after May 31 and that the office subsequently transitioned to an acting chief executive officer in accordance with the law.
Auditor General investigations
The case against Kaddunabbi is rooted largely in findings contained in a special forensic investigation conducted by the Auditor General following complaints raised by the IRA board.
The investigation examined allegations of financial and administrative impropriety and concluded that several aspects of the Kaddunabbi’s conduct raised governance concerns.
One of the most significant findings relates to salary adjustments. The Auditor General found that Kaddunabbi’s salary increased from Shs46.3m per month to more than Shs60.8m between 2021 and 2025.
The report notes that increases did not follow the Minister of Finance’s guidance requiring salary adjustments to be linked to Bank of Uganda inflation rates and subjected to board recommendation before consideration. Investigators found no evidence that the board formally approved the salary increases.
The Auditor General also questioned payments related to leave benefits, noting that Kaddunabbi received leave allowances amounting to Shs36.8m despite a lack of evidence that he had taken the leave required to qualify for those payments.
Investigators further found that he received Shs87.2m in compensation for untaken leave, a payment they considered inconsistent with both the Employment Act and the terms of his appointment because his contract had expired naturally rather than being terminated.
Another issue concerned travel and per diem payments associated with Africa Reinsurance Corporation activities, in which the Auditor General found that Kaddunabbi received full per diem for several assignments even though IRA policy entitled him to only a fraction of those payments, resulting in what investigators estimated to be a loss of Shs57.4m to IRA.
The report additionally criticised recruitment processes at IRA, in which investigators found that six extra staff members were recruited beyond the number originally advertised and concluded that, although there was general board approval to expand staffing, there was no documented approval for the specific additional positions eventually filled.
Thus, the Auditor General’s investigation became a turning point in the reappointment saga.