Written By | Peter Luzinda
The court order bars the IRA Board from proceeding with interviews or appointing a substantive CEO after Kaddunabbi challenged the board's decision not to renew his contract.
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KAMPALA
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 (CEO), 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 substantive CEO after Kaddunabbi challenged the board's decision not to renew his contract.
Kaddunabbi, who has led the authority for several years, argues that the decision not to extend his tenure was made unfairly and without due process. Through his legal team, he is seeking court declarations challenging the board's actions, as well as orders halting the implementation of the recruitment process.
The case places one of Uganda's key financial regulators at the centre of a legal and governance dispute over executive succession in public institutions.
During Kaddunabbi's tenure, the Insurance Regulatory Authority oversaw a number of industry reforms, including strengthened supervision of insurance companies, expansion of digital insurance services, and campaigns aimed at increasing insurance penetration across Uganda.
Court documents indicate that the outgoing CEO contends he was denied a fair hearing before the board reached its decision. He further argues that the process violated the principles of natural justice and legitimate expectation under administrative law.
The IRA Board had already initiated the recruitment process to identify a new CEO following the expiry of Kaddunabbi's contract, attracting interest from professionals within Uganda's banking, insurance, and investment sectors.
However, the High Court's interim orders have now halted the recruitment process until the substantive application is heard and determined.
The dispute has drawn attention from legal and financial experts, with analysts observing that the outcome could shape how independent regulators and other statutory bodies handle the renewal of contracts for senior executives.
By Tuesday evening, the Insurance Regulatory Authority had not issued an official statement commenting on the court ruling or responding to the allegations contained in the suit.
The matter is expected to return to court for further hearing as both parties prepare to argue their positions over the contested leadership transition.
