Ex-CEO Kaddunabbi goes to court seeking IRA contract renewal

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Alhaj Ibrahim Lubega Kaddunabbi, the outgoing chief executive officer of the Insurance Regulatory Authority (IRA), has petitioned court challenging the decision not to renew his contract.

In a judicial review suit filed at the Civil Division of the High Court in Kampala on Monday, June 1, 2026, Kaddunabbi is seeking an order quashing the decision of the IRA board dated February 16 this year, which declined to recommend renewal of his contract for another five-year term.

Through his lawyers from M/s Arcadia Advocates, Kaddunabbi argues that the IRA board members not only acted irrationally but also offended the rules of natural justice when they declined to recommend him for re-appointment.

Kaddunabbi’s contract expired on May 31 this year. However, on May 28, he had expressed interest to the board seeking recommendation for renewal of his contract.

IRA lawyers John Musiime and Kenneth Mugira at the Civil Division of the High Court in Kampala on Monday June 1, 2026. (Photo by Farooq Kasule)

He argues that he remains eligible for re-appointment based on the IRA Human Resource Manual and the Insurance Act.

Kaddunabbi was first appointed to the position in May 2011 and subsequently re-appointed on August 25, 2016, in line with section 21(2)(a) of the Insurance Act, Cap 213. The Act provided no term limits for the position of chief executive officer.

However, the law was repealed and replaced with the Insurance Act of 2017, which introduced term limits of two five-year terms.

In May 2021, Kaddunabbi was re-appointed for another five-year term at the helm of the insurance body.

He contends that the 2017 Act, which introduced term limits, cannot be applied retrospectively to his previous two terms and that he is therefore eligible for re-appointment for another five-year term.

IRA’s stance

However, the IRA, through its lawyers from Dentons, contends that Kaddunabbi’s contract of employment was strictly for a fixed term of five years commencing on June 1, 2021, having previously served two terms under the old law.

IRA lawyers John Musiime and Kenneth Mugira argue that the final decision not to renew Kaddunabbi’s contract was reached through a collective and democratic 5:3 majority vote of the board conducted via formal ballot.

Court documents indicate that the board, by majority vote, declined to renew Kaddunabbi’s contract for several reasons, including alleged unapproved personal salary adjustments without board approval or consent of the Minister of Finance and Economic Planning, amounting to sh337m by June 30, 2025.

Other reasons include the alleged unauthorised recruitment of six excess staff between February and March 2024, which reportedly caused an unbudgeted and unapproved financial burden of sh647m on the authority, among others.

In an affidavit, Dr Isaac Nabeta Nkote, the former IRA board chairperson, states that Kaddunabbi’s contract naturally and legally expired by effluxion of time on May 31 this year.

Nkote claims that Kaddunabbi’s re-appointment was also rejected based on the Auditor General’s report dated May 15 this year, which raised several administrative and financial concerns under his stewardship.

Court orders submissions

When the parties appeared in court on Monday, High Court judge Joyce Kavuma directed them to file their respective submissions by June 10. The matter was adjourned to June 12 for hearing. Kaddunabbi was represented by Isaac Bakayana.

The Minister of Finance has since appointed Sande Protazio as acting chief executive officer pending the appointment of a substantive CEO.

IRA is a government agency mandated to regulate, supervise, monitor and control the insurance business in the country, ensuring financial stability in the industry, protecting policyholders and promoting market growth.