Uganda’s Insurance Regulatory Authority (IRA) is entering a period of legal and leadership uncertainty following a court appeal by former Chief Executive Officer Alhaji Ibrahim Kaddunabbi Lubega, who is challenging the non-renewal of his contract after 16 years in office. At the same time, Dr. Protazio Sande has taken over as Acting CEO effective June 1, 2026, marking a key transition in a sector still struggling to push insurance penetration beyond 1% of GDP.
The former CEO’s contract officially ended on May 31, 2026, after the IRA Board declined to recommend renewal in February. He has since filed a case at the High Court seeking judicial review, arguing procedural irregularities. The matter is scheduled for mention on June 12, adding short-term uncertainty to a regulator central to Uganda’s financial stability and long-term investment confidence.
This leadership dispute goes beyond institutional administration. It highlights a deeper structural issue: Uganda’s insurance sector has remained stable and compliant for years, but its growth has stagnated, with penetration still below 1% despite rising premium volumes.
Uganda’s insurance industry has undergone significant reforms over the past decade under Kaddunabbi Lubega. The IRA introduced risk-based capital requirements, separated life and non-life insurance businesses, and expanded regulatory frameworks to include Islamic insurance (Takaful) and early InsurTech sandboxes. Premium collections rose above 2 trillion shillings, reflecting formal sector growth.
However, despite this progress, penetration remained weak. Uganda still lags behind regional peers such as Kenya at around 2.2%, Rwanda at 1.6%, and South Africa above 12%. This gap highlights a core contradiction: the sector became more stable, but not more widely used.
“The tragedy of the last decade isn’t that the IRA failed to regulate; it’s that it regulated a stagnant sandbox. Stability is useless if it only serves a small fraction of the economy,” says a Regional Frontier Markets Analyst.
The new Acting CEO inherits a market facing three major structural barriers.
The first is trust. Many businesses and individuals view insurance as slow or difficult to claim, creating reluctance to participate. In practice, delayed claims are often treated as denied claims, weakening confidence in the entire system.
The second is weak enforcement of compulsory insurance. While motor third-party insurance is widely used, other key segments such as marine insurance and national health insurance remain underdeveloped. This has contributed to an estimated UGX 300–500 billion annual leakage in marine-related premiums alone as importers continue to rely on offshore coverage.
The third challenge is access. Over 80% of Uganda’s workforce operates in the informal economy, yet traditional insurance products reach less than 2% of smallholder farmers and SMEs. With more than 30 million mobile money accounts in circulation, experts argue that digital micro-insurance could unlock up to 5–7 million new customers within three years if properly implemented.
The biggest opportunity for transformation lies in Uganda’s oil, gas, and infrastructure projects in the Albertine region. Historically, more than 90% of large infrastructure insurance premiums have been placed in foreign markets due to limited local underwriting capacity, resulting in significant capital outflows.
Although initiatives like the National Oil and Gas Co-Insurance Syndicate have improved local participation, experts say enforcement of local content rules must be strengthened to retain more value within the domestic financial system.
“The Albertine region should be building domestic financial strength, not exporting risk premiums abroad. Retaining these premiums is not protectionism it is economic sovereignty,” notes an energy underwriting specialist.
To raise insurance penetration meaningfully toward 3% in the coming years, industry observers say the IRA must shift from regulation to market expansion.
Insurance must be embedded into everyday financial systems such as mobile money platforms, banking apps, transport services, and agricultural supply chains. This would make insurance automatic and accessible rather than optional and complex.
Transparency is also critical. Publishing regular claims performance data including payout speed and settlement ratios would help rebuild trust in the sector.
Stronger coordination with agencies such as the Uganda Revenue Authority could also close loopholes in marine insurance enforcement, ensuring more premiums remain within Uganda’s financial system.
Finally, insurers must develop simple, affordable micro-insurance products designed for farmers, SMEs, and informal workers who currently sit outside the traditional insurance ecosystem.
The ongoing court appeal by the former CEO adds short-term uncertainty to the regulator, but it also underscores the importance of predictable institutional leadership at a time when Uganda is seeking deeper financial sector development.
Ultimately, Uganda’s insurance sector stands at a turning point. The leadership transition will be judged not just by regulatory stability, but by whether the industry can finally break through the 1% barrier and become a true engine of economic resilience, capital retention, and business protection.
