Minister Tumwebaze dubs Uganda insurance companies ‘a scam’

Agriculture Minister Frank Tumwebaze has accused insurance companies in Uganda of frustrating farmers’ claims despite collecting large premiums, describing insurance as “a scam”.

Tumwebaze asked the Insurance Regulatory Authority of Uganda (IRA) to intervene. He said farmers who insure livestock bought through agricultural loans often struggle to secure compensation when the animals die.

“We, the farmers, have a serious quarrel with the actors (called insurance companies) you regulate. Insurance is proving to be a scam, sorry to say,” Tumwebaze said.

The minister claimed that insurance had become a mandatory requirement for borrowers under programmes such as the Agricultural Credit Facility. However, he argued that insurers often relied on technicalities to reject claims.

“Many farmers who take ACF loans, for example, to import high-pedigree animals rarely get compensated by insurance companies when their insured animals die,” he said.

Tumwebaze said similar complaints had emerged from radio broadcasters whose insured equipment was damaged by natural disasters. He said he received such complaints while serving as ICT minister and was now hearing the same concerns from farmers.

“We must address this issue or we stop making insurance a mandatory condition or prerequisite for loans and other services,” he said.

“Insurance companies hiding behind frivolous technicalities to deny compensation to their clients who have paid hefty premiums is unfair and unacceptable.”

Tumwebaze’s criticism comes as the government seeks to expand agricultural insurance to protect farmers against drought, floods, pests, diseases and livestock losses.

The government introduced the Uganda Agriculture Insurance Scheme in the 2016/17 financial year. The programme is managed by the Agro Insurance Consortium, which brings together companies offering agricultural insurance. It covers crops, livestock, aquaculture and beekeeping, among other farming activities. 

The government provides Shs5 billion annually to subsidise premiums. The subsidy covers up to 50 per cent of the premium for small-scale farmers and 30 per cent for large-scale farmers. 

According to the United Nations Development Programme, 102,785 farmers received agricultural insurance cover in 2025, with gross premiums valued at about $3.8 million. 

However, a 2026 independent evaluation of the scheme found that limited public awareness prevented many farmers from understanding insurance terms, navigating the claims process and holding insurers accountable. It also cited unpredictable releases of government subsidy funds as a challenge to planning and confidence in the programme. 

The IRA regulates and supervises insurance companies and protects policyholders. Under the Insurance Act, 2017, the authority can receive and resolve complaints, investigate the conduct of licensed insurers, arbitrate disputes and order restitution where appropriate. 

Farmers whose claims are rejected can report their cases to the IRA’s Insurance Complaints Bureau. The authority says the service is free and handles disputes between insurers and policyholders. 

The IRA had not publicly responded to Tumwebaze’s criticism by the time of publication.