According to the statement dated 4th July 2025, the decision, approved by shareholders, comes after what the firm calls a “strategic review,” citing untenable market conditions and the need for significant capital investment beyond the company’s budgeted resources.
Similarly, Managing Director Japheth Omare Omwero confirmed that UAP will remain operational for existing policyholders until their current insurance periods expire.
Reacting to the matter, counsel Marko Reech stated that UAP is trying to evade its responsibility, especially regarding the long-awaited judgment between the company and national staff whose contracts were unlawfully terminated.
“In our view, we are seeing the company as they are trying to skip the liability or to run away from their liability that may occur in the process of delivering the final judgment, which was fixed for the end of this month,” he said.
According to the attorney, the Juba-based administration has not been honest with the board of directors, staff, or clients until he filed a formal complaint with the court on July 7th.
“So, they were not even willing to publish it publicly in the media until we began our complaint on the 7th—we gave them someone to appear in court on the 11th to clear the file, which we protested to the high court and the judgment.
“However, due to the changes made in the court yesterday, the majority of the judges are no longer working,” Reech stated.
He noted that the complaint was filed under Sections 166 and 167 of the Civil Procedure Act as a preliminary or temporary injunction to prevent the company from closing or conducting any business that could affect the case.
He stressed that they would halt any procedures or trials that the corporation intended to use to liquidate or exit the business in South Sudan.
Mr. Reech added that the issue was discussed on July 3rd, when the UAP board of directors met in the main premises in Nairobi and resolved to close the operation in South Sudan.
“Unfortunately, with our observation, we have found that matter in the Kenyan newspaper and the Kenyan media, which they have published, and they did not even publish it in the media in South Sudan until we have launched another complaint, which we have submitted on the 7th of July,” he said.
Meanwhile, Mr. Ter Manyang Gatwech, Executive Director of the Centre for Peace and Advocacy (CPA), called on the UAP Insurance Company to fulfil its moral and legal obligation to compensate its former employees before fully shutting down its operations.
He expressed concern that UAP, which has been embroiled in a legal battle with former staff since last year, may attempt to dissolve operations without resolving outstanding labour disputes.
Ter said that although UAP might narrowly avoid liability in court, CPA urges the organisation to act with integrity and fairness.
“While some reports suggest UAP closed due to internal frustrations, we believe financial and ethical responsibilities to employees are the real issue at stake,” said a CPA, Ter Manyang
“Whatever the reason for shutting down, UAP should ensure its former employees are paid what they are owed,” he added
