In August 2022, His Excellency Gen. Yoweri Kaguta Tibuhaburwa Museveni announced that Umeme Limited’s 20-year concession agreement with the Uganda Electricity Distribution Company Limited (UEDCL) would not be renewed upon its expiry in March 2025. The President directed the Ministry of Energy and Mineral Development (MEMD) to prepare UEDCL to take over electricity distribution functions after Umeme’s contract ends.
This decision aligns with the Government of Uganda’s (GoU) broader policy of not renewing energy sector concessions that have naturally run their course. For instance, Uganda Electricity Generation Company Limited (UEGCL) successfully took over the operations of Nalubaale and Kiira Dams from ESKOM. Similarly, UEDCL has been preparing to assume operations from entities such as Kilembe Investment Limited, Bundibugyo Energy Cooperative Society, Kyegegwa Rural Energy Cooperative Society, Ferdisult Engineering Limited, and PACMECS. These efforts are part of the implementation of the Energy Policy 2023, particularly Strategy 12 (page 42), which calls for the consolidation of the electricity distribution sector.
However, reports reaching Watchdog News reveal a disturbing development. There has been an ongoing back-and-forth at MEMD, where plans are allegedly being hatched to dissolve UEDCL’s workforce before the end of 2024. Documents obtained by this publication show that the Ministry of Public Service directed all energy sector agencies, including UEDCL, UEGCL, and UETCL, to renew their employees’ contracts through June 2026. Yet, the Ministry of Energy appears determined to sack UEDCL staff—despite the financial and operational costs to taxpayers.
If implemented, this decision would reverse years of meticulous planning for a seamless transition post-Umeme. Additionally, it raises concerns about the enormous compensation that would have to be paid to terminated UEDCL employees, many of whom have been integral to the company’s preparedness for taking over electricity distribution.
Further compounding the issue, former employees of the Rural Electrification Agency (REA), who were dismissed on October 19, 2022, have reportedly not received their benefits. Sources at Amber House also disclose that staff absorbed into MEMD have yet to be paid a single penny. The controversial decision to mainstream REA has stalled numerous rural electrification projects, leaving poles to rot on the ground and transformers and wires vulnerable to theft. These failures have wasted taxpayers’ money and denied many Ugandans the opportunity to access electricity.
Sacking UEDCL staff at this juncture would not only undermine efforts to recruit former Umeme employees but also create a resource and operational crisis at a critical time. Our investigations reveal that such actions could open the floodgates for corruption and mismanagement in the energy sector, turning it into a lucrative “money-making machine” for certain actors, while leaving the country grappling with a severe human resource shortage.
The Ministry of Energy must answer for its actions. Why jeopardize the electricity distribution transition process and gamble with public funds? Why leave critical electrification projects incomplete and waste national resources?
The full story, including insights into decades of scandals in the electricity sub-sector, is coming soon.
Stay tuned for updates.
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