In a landmark ruling delivered on June 11, 2025, the Industrial Court awarded Jolly Kaguhangire, former executive director of the Uganda Investment Authority (UIA), approximately Shs600m in damages for her unlawful dismissal in August 2018.
The court, comprising Justices Linda Lillian Tusiime Mugisha, John Abraham Bwire, Julian Nyachwo, and Juma Mwamula, declared her termination by the UIA Board, chaired by Dr. Emily Kugonza, procedurally and substantively unlawful.
Kaguhangire, aged 51 at the time, had served only 18 months of her five-year contract, which began on April 1, 2017.
Kaguhangire, a seasoned professional with over 20 years at the Uganda Revenue Authority, had earned an 80.3% appraisal from the UIA Board before her abrupt ousting.
Her efforts to restructure UIA for efficiency sparked resistance from staff, who petitioned the Inspector General of Government with false allegations, all later dismissed.
Despite this, certain ministry of Finance officials and board members, determined to remove her, orchestrated a biased investigation committee.
The committee’s report, riddled with unproven claims like abuse of office and insubordination, fueled a damaging media campaign to tarnish her reputation and isolate her from presidential support.
The court found that the board improperly relied on Public Service Standing Orders instead of UIA’s Investment Code Act and HR Manual, violating Kaguhangire’s contract. Her constitutional right to a fair hearing under Article 28 was disregarded, as no disciplinary process was initiated to allow her defense.
Mandatory legal provisions, including a three-month notice period, were also ignored. The court rejected UIA’s defense, presented by lawyer Franklin Uwizera, and awarded Kaguhangire Shs52.9m in lieu of notice, Shs280m in general damages, Shs35m in aggravated damages, and Shs17.9m in severance pay, with 15% annual interest until fully paid.
The damages reflected the severe harm to Kaguhangire’s reputation, orchestrated through print and social media, which diminished her future employability despite no proven wrongdoing. While the court stopped short of ordering her reinstatement, the ruling vindicated Kaguhangire, whose lawyer, Paul Kutesa, successfully argued her case.
The judgment exposed the board’s malicious tactics and affirmed Kaguhangire’s integrity, delivering her justice seven years after her wrongful dismissal.
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