(JUBA) – UAP South Sudan to Shut Down After Legal and Financial Struggles
UAP Insurance South Sudan Ltd, a subsidiary of the Old Mutual Group East Africa, has announced it will shut down its operations in South Sudan over the next 24 months, citing severe financial and legal challenges.
The decision which was approved by the company’s shareholders follows a strategic review which concluded that the insurance business was no longer sustainable in the current market. According to the statement from Managing Director Japheth Omare Omwero, UAP’s operations require a level of capital investment that goes beyond the company’s planned resources for South Sudan.
As part of the closure process, UAP confirmed that it will not accept any new insurance policies or renew existing ones from 3 July 2025. However, it will continue to serve existing clients until their current policies expire. Claims will still be honoured according to the original terms: for medical and life policies, claims will be accepted within 90 days of either the policy expiry or the claim event, whichever comes first. For general insurance, the claim window will remain open for up to 180 days.
The decision comes following rising legal and operational problems for the company. In September 2023, UAP South Sudan came under fire after unlawfully dismissing 57 national staff members who had taken part in a sit in protest. The protest was over pay disparities and alleged mistreatment compared to foreign expatriate staff. Following an investigation, the Ministry of Labour ordered the company to reinstate the affected employees and revise its salary structure. However, UAP failed to comply with the directive, prompting the UAP National Staff Association (UNSA) to take legal action.
The matter escalated in February 2024 when the High Court issued an arrest warrant for Managing Director Omwero after he failed to appear in court. Although he was later released, the case remains unresolved, with the final court submission scheduled for 4 July 2025—the same week UAP publicly announced its exit from the South Sudanese market.
While UAP has committed to honouring all existing obligations to clients during the runoff period, its closure raises serious concerns about the stability of South Sudan’s insurance industry. The company’s departure also adds pressure to a weak and still-developing financial sector already burdened by currency instability and regulatory uncertainty.
UAP Insurance has been one of the few international players operating in South Sudan’s nascent insurance sector. Its exit may discourage other foreign investors and raises concerns about future access to trusted insurance services for individuals and businesses.
