The High Court Civil Division in Kampala has temporarily stopped the Insurance Regulatory Authority (IRA) from appointing a substantive Chief Executive Officer until a case filed by former CEO Al Hajji Ibrahim Kaddunabbi Lubega, challenging the board’s decision not to renew his contract, is heard and determined.
In a ruling delivered by Justice Joyce Kavuma, the court granted an interim injunction restraining the IRA from completing the appointment process for a substantive CEO. However, the court allowed the current Acting Chief Executive Officer, Dr. Protazio Sande, to remain in office pending the outcome of the case.
The ruling arises from Miscellaneous Application No. 423 of 2026, in which Kaddunabbi is challenging the IRA Board and its former chairperson, Dr. Nkote Isaac Nabeta, over the decision not to recommend him to the Minister of Finance, Planning and Economic Development for reappointment.
Kaddunabbi’s five-year contract commenced on June 1, 2021, and expired on May 31, 2026. He contends that, under the Insurance Act and the Authority’s Human Resource Management Manual, he was eligible for reappointment to a second five-year term.
According to court documents, Kaddunabbi argues that the board reached its decision on February 16, 2026, without giving him a fair hearing, thereby violating his right to a fair and just administrative process.
He asked the court to halt the implementation of the board’s decision pending the determination of his application, arguing that allowing the appointment process to proceed would render his challenge meaningless.
The IRA opposed the application, maintaining that Kaddunabbi’s contract had naturally expired and that there was no existing contract for the court to preserve. The Authority further argued that eligibility for renewal did not automatically entitle him to another term.
The respondents also informed the court that the Minister of Finance had already appointed Dr. Protazio Sande as Acting Chief Executive Officer, effective June 1, 2026, and argued that the balance of convenience favored allowing the Authority to continue its operations.
Justice Kavuma, however, rejected the argument that the matter had been overtaken by events.
The judge observed that although Kaddunabbi’s contract had expired and an Acting CEO had been appointed, the statutory process of appointing a substantive Chief Executive Officer had not been completed because the Minister had not yet acted on the board’s recommendation.
She held that allowing the appointment process to continue before determining Kaddunabbi’s challenge would pose a real threat to his right to a fair hearing and could render the main application nugatory.
The court, however, declined to reverse decisions that had already taken effect, including Dr. Sande’s appointment as Acting Chief Executive Officer, noting that an interim injunction cannot be used to undo actions already taken before the court reaches a final determination.
Justice Kavuma also declined to summarily determine allegations of contempt raised by Kaddunabbi’s lawyers against the respondents, saying the alleged acts occurred outside the court’s presence and would require a separate application in which the respondents would be given an opportunity to respond.
The ruling means Dr. Protazio Sande will continue serving as Acting Chief Executive Officer, but the Insurance Regulatory Authority cannot appoint a substantive CEO until the High Court determines whether the board acted lawfully and fairly in declining to recommend Kaddunabbi for a second term.
