The High Court in Kampala has issued an interim injunction stopping the Insurance Regulatory Authority of Uganda (IRA) from proceeding with the appointment of a substantive Chief Executive Officer, pending the determination of a legal challenge filed by the outgoing CEO, Ibrahim Kaddunabbi Lubega.
In a ruling delivered on Monday evening, the Head of the Civil Division, Lady Justice Joyce Kavuma, noted that although Kaddunabbi’s five-year contract expired on May 31, 2026, the statutory process for appointing a new substantive CEO had not yet been completed and therefore should be suspended until the court hears and determines the main application.
The dispute arises from a decision by the IRA Board on February 16, 2026, in which it declined to recommend Kaddunabbi for renewal of his contract for another five-year term. Kaddunabbi contends that he was eligible for reappointment under the Insurance Act and the Authority’s Human Resource Management Manual, and that the Board acted unfairly by failing to forward his name to the Minister of Finance, Planning and Economic Development, who holds the final appointing authority.
In his application, Kaddunabbi asked the court to restrain the Authority and its Board from implementing the February decision and from placing him on forced leave, arguing that the move was unlawful while his challenge was still pending.
The Insurance Regulatory Authority, through its Director of Legal Affairs and Secretary, opposed the application, arguing that the matter had been overtaken by events since the claimant’s contract had already lapsed. The Authority further told court that the Permanent Secretary and Secretary to the Treasury had appointed Dr Protazio Sande as Acting Chief Executive Officer effective June 1, 2026, meaning there was no longer an existing employment contract to preserve.
Former IRA Board Chairperson Dr Isaac Nabeta also defended the Board’s actions, insisting that it acted within its legal mandate and in good faith when it declined to recommend Kaddunabbi for reappointment.
During the proceedings, Kaddunabbi’s lawyers accused the respondents of violating an earlier court directive issued on May 29, 2026, by proceeding to facilitate the appointment of an Acting CEO despite an existing court order. However, Justice Kavuma declined to rule on the contempt allegations, stating that they amounted to indirect contempt which must be pursued through separate proceedings where the affected parties are given a chance to respond.
“The allegations of contempt are not properly before this court,” she ruled.
The judge also dismissed the respondents’ argument that the case had been overtaken by events. She held that although the employment contract had expired, the statutory process for appointing a substantive CEO was still ongoing since the Minister of Finance had not yet exercised powers under Section 20 of the Insurance Act.
“The events that happened on June 1, 2026, are the first steps in a continuous process which has not ended. Therefore, it cannot be correct to state that this application has been overtaken by events,” Justice Kavuma stated.
While acknowledging that the appointment of an Acting CEO had already changed the status quo and could not be reversed through an interim order, the judge noted that there remained a real risk that the recruitment process could be concluded before the main judicial review application is heard.
She therefore held that protecting the applicant’s right to a fair administrative process was necessary to prevent the substantive case from becoming meaningless.
“The rights of the applicant to a just and fair process need to be protected until this court determines the substantive application such that the main application is not rendered nugatory,” she ruled.
The court consequently barred the IRA from proceeding with the appointment of a substantive Chief Executive Officer until the judicial review case is concluded. The main application has been fixed for hearing on June 30, 2026, at 2:00 p.m.
The ruling means Dr Protazio Sande will continue serving as Acting Chief Executive Officer, but no permanent appointment can be made until the High Court resolves the legality of the Board’s decision not to renew Kaddunabbi’s contract.
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