IRA asks court to dismiss ex-boss Kaddunabbi suit over contract renewal

The Insurance Regulatory Authority of Uganda (IRA) and its former board chairperson, Dr Isaac Nkote Nabeta, have asked the High court to dismiss a judicial review application filed by outgoing chief executive officer Ibrahim Kaddunabbi Lubega.

The respondents argue that the application has been overtaken by events following the expiry of Kaddunabbi’s contract and the appointment of a new acting CEO.

In affidavits filed before the Civil Division of the High court on Monday, IRA and Nkote contend that there is no longer any contract for the court to preserve or reinstate since Kaddunabbi’s five-year term expired on May 31, 2026.

Through their lawyers at Dentons Advocates, led by counsel John Musiime, the respondents further argue that the Minister of Finance has since appointed Protazio Sande as acting chief executive officer with effect from June 1, 2026, rendering the interim relief sought legally untenable.

According to IRA board secretary Francesca N Kakooza, Kaddunabbi’s contract was for a fixed term running from June 1, 2021, to May 31, 2026, and therefore expired automatically by operation of law.

She states that ahead of the expiry of his contract, the board directed Kaddunabbi to proceed on leave and complete the handover process, which has since been concluded.

The authority argues that granting the application would create an “absurd situation” in which two individuals simultaneously claim authority over the regulator, thereby disrupting governance and control of public resources.

Kaddunabbi is challenging the board’s decision of February 16, 2026, declining to recommend him for a second term. He argues that he was denied a fair hearing despite what he describes as a strong performance record and a legitimate expectation of contract renewal.

Court records show that Kaddunabbi has served as chief executive officer since 2011, initially under the Uganda Insurance Commission before its transition into the IRA, giving him a combined 16 years at the helm of the regulator.

He maintains that his achievements, including growth in insurance premiums, digital transformation reforms, expansion of regional operations and infrastructure development, qualified him for reappointment.

However, the authority insists that eligibility for consideration does not amount to an entitlement to renewal, noting that both the board and the minister retain discretion under the law.

The respondents further cite governance concerns raised through internal reviews and audits, including allegations of unauthorised salary enhancements, recruitment of staff without board approval and monetisation of leave without policy backing.

They also contend that a whistleblower-triggered inquiry and a subsequent Auditor General’s report raised additional concerns. According to the affidavits, Kaddunabbi was given an opportunity to respond during an extraordinary board meeting held on May 25, 2026.

Nkote denies any bias or personal vendetta, maintaining that all actions were undertaken in accordance with board resolutions and statutory obligations, and that Kaddunabbi was properly excluded from discussions relating to his own contract.

The authority further argues that the board’s final decision was reached through a five-to-three majority vote, reflecting a collective position rather than an individual determination.

Kaddunabbi, however, alleges procedural unfairness, claiming that he was excluded from key deliberations and that investigations were influenced by complaints and social media allegations intended to frustrate the renewal of his contract.

The respondents have asked court to dismiss the application with costs, arguing that no irreparable harm has been demonstrated and that any loss suffered can be adequately compensated through damages. When the matter came before justice Joyce Kavuma on Monday, she directed both parties to file written submissions by June 5 and June 10, respectively, and fixed June 12, 2026, for further directions.

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المصدر: The Observer (Uganda)