The Insurance Regulatory Authority of Uganda (IRA) Chief Executive officer, Alhaj Dr. Kaddunabbi Ibrahim Lubega, has underscored the central role of insurance in securing Uganda’s drive toward a fully monetized economy, urging local leaders to integrate risk management into all development plans.
While speaking to Butambala district leaders who had gathered at Gombe Senior Secondary School for the Budget Consultative Meeting, Dr. Kaddunabbi said that while Uganda’s economy continues to grow steadily, the gains remain fragile without deliberate mechanisms to cushion citizens and businesses from shocks through insurance.
“Many Ugandans still live one disaster away from poverty. Monetization means nothing if income disappears after a flood, a fire, or illness. That is why insurance must be seen as a pillar and not an option in our economic transformation,” he said noting that Uganda loses more than UGX 171 billion annually to floods and droughts, while 40 percent of households deteriorate into poverty after a disaster or sickness.
“Without risk management, progress becomes temporary. But with insurance, incomes continue, enterprises recover, and investments endure,” he emphasized.
He urged local governments to budget for insurance and promote community-level participation in insurance schemes, especially under the Parish Development Model and other agricultural programs.
“Insurance is not just a financial product, it is the backbone of resilience. It keeps factories in operation after fires or machinery breakdown, prevents SMEs from collapsing after accidents or losses, supports banks to lend confidently to farmers and businesses, protects individuals and households from medical and life emergencies; and guarantees that progress does not disappear even when challenges come.” Dr. Kaddunabbi encouraged leaders to view themselves as nation-builders tasked with shielding progress from reversal by mainstreaming insurance in district plans as this does not only protect individual livelihoods but also local revenue and national growth.
Speaking at the same event, the Resident District Commissioner (RDC) for Butambala District Hajji Lubwama Sulaiman challenged the youth to use their energy productively through income-generating ventures instead of being manipulated by politicians to engage in acts of violence.