By Ben Musanje
A bitter leadership battle has engulfed the Insurance Regulatory Authority of Uganda (IRA) after former Chief Executive Officer Ibrahim Lubega Kaddunabbi returned to the regulator’s headquarters on Monday and asserted that he remained the agency’s substantive head, triggering an immediate legal response from the authority and exposing competing interpretations of a recent High Court order.
The confrontation comes at the center of a wider dispute over the non-renewal of Kaddunabbi’s contract, the powers of the IRA Board, and the extent to which the courts can intervene in executive appointments within statutory agencies.
On Monday morning, lawyers representing the IRA issued an urgent cease-and-desist notice accusing Lubega Kaddunabbi of unlawfully entering the authority’s premises, convening staff, and presenting himself as the Chief Executive Officer despite the expiry of his contract on May 31, 2026.
The letter, authored by Dentons Advocates partner John Musime, was addressed to Arcadia Advocates, who represent Kaddunabbi in an ongoing court case against the regulator.
“We act for and on behalf of the Insurance Regulatory Authority of Uganda (IRA),” the letter states before detailing what the authority described as an unauthorized attempt by Kaddunabbi to continue exercising powers of the office.
According to the IRA, Kaddunabbi entered the regulator’s offices on June 1 and assembled staff members while claiming that a High Court administrative order issued by Lady Justice Joyce Kavuma on May 29 had effectively preserved his position as Chief Executive Officer.
The authority strongly rejected that interpretation.
Court Battle Over Contract Renewal
The dispute stems from a legal challenge filed by Kaddunabbi following a February 16, 2026 decision by the IRA Board declining to recommend him for renewal as Chief Executive Officer.
Lubega Kaddunabbi subsequently sued the Insurance Regulatory Authority and Dr. Isaac Nkote Nabeta, resulting in Miscellaneous Application No. 423 of 2026 before the High Court in Kampala.
The case arose from Miscellaneous Application No. 421 of 2026 and Miscellaneous Cause No. 131 of 2026.
In the application, Kaddunabbi sought interim orders restraining the IRA and its Board from implementing the February 16 decision pending the determination of his substantive challenge.
During the hearing, lawyers representing the authority argued that the applicant’s contract was due to expire on May 29, 2026, effectively ending on May 31 after the weekend. They contended that any preservatory orders issued by the court would effectively amount to a judicial renewal of the contract.
The respondents further argued that Parliament had vested authority to renew the contract of the IRA Chief Executive Officer in the Minister responsible for Finance acting on the recommendation of the Board.
According to submissions recorded in Justice Kavuma’s ruling, the authority warned that granting the orders could create a situation where there would effectively be two CEOs — one appointed through executive authority and another preserved by court order.
The respondents also argued that interim relief should not confer greater rights than those already held by an applicant.
Kaddunabbi’s Argument
Kaddunabbi’s legal team maintained that he enjoyed a right to be reappointed under Section 21(3) of the Insurance Act and argued that the court should issue an administrative interim order while allowing both parties additional time to prepare their responses.
His lawyers submitted that the appointment process was being undertaken while his contract remained in force and urged the court to preserve his rights pending determination of the substantive dispute.
They further argued that they had only received the Auditor General’s report shortly before the hearing and required additional time to respond adequately.
Justice Kavuma’s Decision
After considering submissions from both sides, Justice Joyce Kavuma ruled that the court possessed inherent powers under Section 98 of the Civil Procedure Act to issue orders necessary to serve the interests of justice and prevent abuse of court process.
The judge noted that the central issue was whether there were sufficient grounds to justify an administrative interim order.
In her ruling, Justice Kavuma emphasized that the purpose of such an order was to preserve the status quo until the substantive application could be heard.
She rejected the argument that the imminent expiry of Kaddunabbi’s contract automatically defeated his application.
“The applicant’s contract has not yet expired and the fact he argues it is expiring on 29/05/2026 cannot be a reason to deny the applicant the orders he seeks from this Court,” the judge held.
Justice Kavuma also addressed concerns that the court order would effectively renew Lubega’s contract.
“On whether the preservative orders would have the effect of renewing the applicant’s contract, this court finds the argument to be untenable,” she ruled.
The judge went on to state that the issue of renewal was the central question in the main application and had not yet been determined.
Significantly, she observed that “a renewal of contract is done by the executive and not the court.”
The court further held that Kaddunabbi was not asking the court to renew his contract but was instead challenging the process through which the Board declined to recommend renewal.
Justice Kavuma concluded that Kaddunabbi possessed rights arising from a contract that had not yet expired and that justice required those rights to be protected pending a full hearing.
The court therefore issued an administrative order restraining the Insurance Regulatory Authority and its Board from implementing or enforcing the February 16 decision declining to recommend him for renewal.
The respondents were directed to file their affidavits by June 1 and the matter was scheduled for hearing at 10:00 a.m. on the same date.
Ministry Moves Ahead With Acting CEO Appointment
Despite the court proceedings, the Ministry of Finance, Planning and Economic Development moved ahead with a leadership transition at the regulator.
In a letter dated June 1, Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi formally appointed Dr. Protazio Sande as Acting Chief Executive Officer of the Insurance Regulatory Authority.
The appointment followed a recommendation made by the IRA Board during its 266th meeting held on April 29, 2026.
Sande, who currently serves as Director of Strategy and Market Development at the authority, was appointed for six months or until a substantive CEO is appointed, whichever occurs first.
The appointment was made under powers granted by Section 21 of the Insurance Act.
Under the terms of the appointment, Sande will report directly to the Board Chairperson and oversee management of the insurance sector regulator while continuing to perform his substantive duties unless directed otherwise.
The ministry also instructed the Board to develop a performance agreement outlining targets aligned with the authority’s strategic plan.
IRA Demands Immediate Withdrawal
Following Kaddunabbi’s appearance at the authority’s premises, Dentons Advocates argued that the court order did not authorize him to continue serving as CEO after the expiry of his contract.
The law firm stated that the administrative order neither renewed nor extended his employment and did not confer authority to exercise the powers and functions of the office after May 31.
The lawyers also pointed to the appointment of Sande as evidence that lawful executive authority had already designated an acting chief executive.
The cease-and-desist letter accused Kaddunabbi of corporate trespass, unlawful usurpation of statutory authority, and abuse of judicial process.
It further warned that no person inside or outside the authority should recognize any instruction, communication, directive, or decision issued by Kaddunabbi in the purported capacity of CEO after the expiry of his contract.
In one of the most striking allegations contained in the letter, the authority’s lawyers stated that Kaddunabbi is under active investigation by the Criminal Investigations Directorate following what they described as adverse findings relating to financial and administrative impropriety.
No details of the alleged findings were disclosed in the documents.
The cease-and-desist notice was copied to the Registrar of the High Court Civil Division, the Director of Criminal Investigations, the Auditor General, the Permanent Secretary to the Treasury, the IRA Board Chairperson and Dr. Sande.
High-Stakes Test for Governance
The unfolding dispute now places the Insurance Regulatory Authority at the center of a significant governance and administrative law battle.
At issue is whether the court’s interim protection of Kaddunabbi’s challenge can coexist with executive decisions relating to appointments at the regulator, and whether the Board’s decision-making process complied with legal and procedural requirements.
The outcome of the case is expected to have implications beyond the insurance sector, potentially clarifying the limits of judicial intervention in disputes involving contract renewals and leadership transitions within statutory bodies.
For now, the regulator finds itself caught between a former chief executive asserting continuing authority, a newly appointed acting chief executive backed by the Finance Ministry, and a court process that has yet to determine the legality of the Board’s actions.
Until that determination is made, the battle for control of Uganda’s insurance watchdog appears far from over.(For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
