Insurance players tipped to leverage booming Ugandan economy

Insurers in Uganda and across the East African region  have been called to position themselves strategically to benefit from Uganda’s rapidly expanding economy. 

The call was made during the company’s annual Jubilee-brokers breakfast meeting held at Four Points by Sheraton Kampala.

Speaking at the event, Dr Julius Kipng’etich, the Regional Group CEO of Jubilee Holdings Limited, said the insurance industry must align itself with the country’s economic trajectory.

Dr Kipng’etich noted that Uganda is currently among the fastest growing economies globally, expanding at nearly seven per cent even before oil exports commence. 

With oil production expected to start this year, he projected even stronger growth over the next two to three decades, potentially transforming Uganda into one of the continent’s largest economies.

“Uganda is growing at nearly 7% when not even a single liter of oil has been pumped yet. You can imagine what the economy will be in the next 5 years. It might grow consistently at 10% for the next 20-30 years,” he said.

Kipng’etich also noted that neighboring countries such as Kenya, his home country, have already positioned themselves to benefit from Uganda’s economic boom.

He pointed out Kenya’s ongoing investments in railway and highway expansion towards Malaba, as well as the Nairobi–Mombasa corridor, which are expected to ease access to the sea for Ugandan goods.

According to Dr Kipng’etich, improved connectivity, rising incomes and increased mobility will make East Africa one of the fastest growing regions globally over the next 20 years. 

“Therefore, as insurers managing risk, we must be ready for that incredible economic output,” he said.

In preparation for this anticipated growth, Jubilee recently merged its Life and Health businesses to form a single, stronger entity. 

Eugine Mutekhele, Acting Deputy CEO of Jubilee Insurance Uganda, said the amalgamation was designed to improve efficiency and eliminate operational gaps that existed when the firms operated separately.

“The overarching vision for us is to derive efficiency which we were missing when the companies were separate,” he explained.

He added that the merger will enable the company to design integrated products combining life and health solutions, particularly targeting emerging sectors such as digital commerce.

John Katende, Chief Distribution Officer, reaffirmed the company’s commitment to brokers, who account for approximately 66 per cent of the market. He pledged a unified customer experience and quarterly feedback surveys to enhance service delivery and reduce client complaints.

Senior management described the merger as transformative not only for the institution but also for Uganda’s broader insurance sector as it prepares to harness the country’s economic boom.