IRA Seeks Dismissal of Kaddunabbi's Suit Over Contract Renewal

The Insurance Regulatory Authority (IRA) and its former board chairperson, Dr. Isaac Nkote Nabeta, have submitted an application to the High Court seeking the dismissal of a judicial review filed by Ibrahim Kaddunabbi Lubega, the outgoing chief executive officer. The respondents’ core argument is that Kaddunabbi’s legal challenge has been rendered irrelevant by the natural expiration of his five-year contract on May 31, 2026, and the subsequent appointment of a new acting CEO.

IRA and Nabeta, through their legal team at Dentons Advocates, contend that there is no existing contract for the court to uphold or reinstate. They highlight that the Minister of Finance has already appointed Protazio Sande as the acting CEO, effective from June 1, 2026, making the interim relief Kaddunabbi is seeking legally unsustainable. The authority’s board secretary, Francesca N. Kakooza, confirmed that Kaddunabbi’s contract was for a fixed term and expired automatically.

Kaddunabbi’s suit challenges the board’s February 16, 2026, decision not to recommend him for a second term. He claims he was denied a fair hearing despite citing his performance, which he believes merited renewal. Kaddunabbi, who has been at the helm of the insurance regulator for 16 years since 2011, points to achievements like premium growth and digital transformation.

However, IRA maintains that eligibility for consideration does not guarantee renewal, asserting that both the board and the minister have discretionary powers. The authority also cited governance concerns stemming from internal reviews and audits, including allegations of unauthorized salary enhancements and recruitment issues. These matters were reportedly discussed with Kaddunabbi in an extraordinary board meeting.

The respondents have urged the court to dismiss the application, arguing that no irreparable harm has been proven and that any potential losses could be addressed through damages. Justice Joyce Kavuma has directed both parties to submit their written arguments by early June, with further court directions scheduled for June 12, 2026.

This dispute is proceeding before the Civil Division of the High Court, with the court awaiting further submissions to determine the next steps. The case highlights the legal complexities surrounding contract renewals and executive governance within regulatory bodies.

Source: The Observer (Uganda)