(JUBA) – UAP Insurance has officially announced its exit from the South Sudanese market, citing ongoing operational challenges and the need for capital investment beyond its current capacity. The Nairobi headquartered insurer made the decision public in a statement issued on 4 July 2025, confirming it would not take on new business or renew existing policies as of 3 July.
The firm stated that while it winds down operations, it will continue to honour all existing contracts. Medical and life insurance claims will be accepted for up to 90 days after the expiry of a policy or the date of a claim, whichever is earlier. For general insurance policies, claims will be accepted for a period of up to 180 days.
The exit follows ongoing legal difficulties, including a high profile dispute with 57 national employees who accused the company of unfair dismissal. The staff, represented by the UAP National Staff Association (UNSA), alleged they were dismissed after protesting unequal treatment compared to foreign employees.
A court case ensued after UAP failed to follow a Ministry of Labour directive instructing the company to reinstate the dismissed staff and align pay structures. In February 2023, the High Court in Juba issued an arrest warrant for UAP’s Managing Director, Japheth Omare Omwero, for non-compliance. He was later released, but the case continued and is scheduled for final submission on 4 July 2025—the same day UAP confirmed its withdrawal.
Despite UAP’s assurance that it will meet its obligations during the runoff period, the closure has raised alarm in the local insurance industry, with concerns growing about the implications for policyholders and employees.
South Sudanese economist Dr Abraham Maliet has claimed that although the exit could dent investor confidence, it may also create space for local and regional firms with the resilience to operate in a difficult economic climate.
“UAP might be leaving because it has either made enough money or faced pressure from emerging competition,” Dr Maliet said. “There are many reasons a business may leave, including being outperformed or no longer seeing value in remaining in the market.”
He added that while the development signals challenges within the regulatory and financial environment, it could also serve as a wake up call for existing and incoming companies to raise their service standards and strengthen their product offerings.
Maliet warned, however, that foreign investors observing the situation may become hesitant, interpreting the UAP exit as a sign of instability. Yet, he noted that many businesses operating in South Sudan are already accustomed to risk and have experience in conflict affected markets.
“The current business landscape in South Sudan is dominated by risk takers,” he said. “Entrepreneurs from countries like Somalia, Eritrea and Ethiopia, who have operated under difficult circumstances before, are likely to fill the gap left by UAP. These are investors who are not deterred by unpredictable environments.”
The economic environment in South Sudan remains challenging for formal enterprises, with ongoing regulatory, legal and financial hurdles.
Summary of UAP Exit Key Details
| Key Event | Details |
|---|---|
| Exit Announcement Date | 4 July 2025 |
| New Policies / Renewals Halted | From 3 July 2025 |
| Medical/Life Claims Window | 90 days post policy expiry or claim date |
| General Insurance Claims Window | 180 days post-policy expiry or claim date |
| Legal Case Against UAP | Ongoing; final submission on 4 July 2025 |
| Managing Director’s Status | Previously arrested, later released |
| Staff Allegations | Unequal pay and unfair dismissal |
| Potential Impact | Loss of investor confidence, opening for competitors |
