A leadership dispute at the Insurance Regulatory Authority (IRA) has escalated to court after the High Court temporarily suspended the regulator’s recruitment process for a new Chief Executive Officer, pending the determination of a case filed by outgoing CEO Ibrahim Kaddunabbi Lubega.
The court order bars the IRA board from proceeding with interviews or appointing a new substantive CEO after Kaddunabbi challenged the board’s refusal to renew his contract.
Kaddunabbi, who has headed the authority for years, argues that the decision not to extend his tenure was reached unfairly and without following proper administrative procedures.
Through his legal team, he is seeking court declarations against the board’s actions and a halt to implementation of the recruitment process.
The case now places one of Uganda’s key financial regulators at the centre of a growing legal and governance dispute over executive transitions within public institutions.
Under Kaddunabbi’s leadership, the Insurance Regulatory Authority oversaw several industry reforms, including tighter supervision of insurance firms, growth in digital insurance services and campaigns aimed at increasing public uptake of insurance products in Uganda.
Court documents indicate that the outgoing CEO believes he was denied a fair hearing before the board arrived at its decision. He further argues that the process violated principles of natural justice and legitimate expectation under public administrative law.
The IRA board had already commenced steps to identify a new CEO following expiry of Kaddunabbi’s contract, triggering interest among players in Uganda’s banking, insurance and investment sectors.
However, the High Court’s interim orders now freeze the transition process until the substantive application is heard and determined.
The dispute has attracted attention within legal and financial circles, with analysts saying the outcome could influence how independent regulators and statutory bodies manage renewal of contracts for senior executives.
By Tuesday evening, the Insurance Regulatory Authority had not publicly issued detailed comments on the court ruling or the allegations raised in the suit.
The matter is expected to return to court for further hearing as both parties prepare to defend their positions over the contested leadership transition.
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