With uncertainty increasingly becoming a defining feature of the business landscape in Uganda, micro and small-scale industrialists have been urged to embrace insurance to mitigate operational risks and ensure business continuity.
According to the Insurance Regulatory Authority of Uganda Chief Executive Officer, Alhaj Dr. Kaddunabbi Ibrahim Lubega, insurance will provide a safety net to guard against catastrophic financial hardship from unexpected events and ensure that businesses stay afloat.
Alhaj Dr. Kaddunabbi was speaking during a half day sensitization engagement with members of the Uganda Small Scale Industries Association (USSIA) in Kampala on February 10, 2026.
He noted that in an increasingly uncertain world, growth does not come from only courage but also from preparedness, protection, and confidence.
“Insurance is not a luxury for large companies as some people think; it exists to protect businesses from shocks. It is a practical tool for business survival and continuity and you might need it more than big companies,” he said.
He noted that while micro, small and medium enterprises (MSMEs) are key to Uganda’s economy, accounting for about 90% of private sector production, employ over 2.5 million people and contribute approximately 20% of the Gross Domestic Product, majority are not insured yet they operate in a high-risk environment.
“Risks like fire, theft, equipment breakdown, accidents, and health emergencies are realities that can easily disrupt or completely shut down a business. You need insurance to lessen the burden of the financial impact once such risks occur,” he said.
The engagement sought to create awareness about the role of insurance in running a profitable enterprise and to demystified about insurance.
Peter Okongo, Senior Licensing and Compliance Officer, IRA, urged USSIA members to take advantage of micro insurance products to get the needed protection for their enterprises and loved ones.
The USSIA chairperson in Kampala Joseph Mulindwa applauded IRA for the engagement, saying it was timely given the increasingly risks faced by MSMEs in the country.
“Whereas many MSMEs have had issues like fires and thefts among others, we had nowhere to run to. There were always rumours that insurance could help us but we did not have concrete information about how it works. The engagement has helped us know how beneficial insurance is and we believe as MSMEs going forward, we will embrace it,” Mulindwa said.
He noted that previously, they feared to take up insurance thinking that it is only for the rich and big businesses but their fears were allayed through the engagement.
Ms. Barbara Nabakka Walugembe, Senior Legal Officer – Complaints & Litigation, IRA urged participants to read their policy documents and understand them to avoid grievances with the insurance service provider during the claims process.
She further urged them to make use of the IRA Complaints Bureau in case they are dissatisfied with the service offered by the insurance service provider.