The Ministry of Energy and Mineral Development (MEMD) reaffirms the Government’s full readiness to take over the electricity distribution concession from Umeme Ltd through its agency, the Uganda Electricity Distribution Company Limited (UEDCL), effective April 1, 2025.
Umeme Ltd. took over Uganda’s electricity distribution in 2005 under a 20-year concession agreement signed with the Government of Uganda. The agreement, which expires on March 31, 2025, mandated Umeme to operate, maintain, and invest in the power distribution infrastructure to enhance efficiency and service delivery.
Over nearly two decades, Umeme has played a key role in expanding the electricity distribution network, increasing customer connections, and improving revenue collection. However, challenges such as high end-user tariffs, infrastructure maintenance issues, and power reliability concerns have persisted.
As UEDCL prepares to resume full control, the Ministry of Finance, Planning, and Economic Development is in the advanced stages of securing US$50 million through internal borrowing.
These funds will be available by the end of next week to support UEDCL’s capital investments, ensuring the company is financially equipped to sustain and improve service delivery from day one.
Additionally, Parliament is finalizing approval of the Buyout Amount a claim by Umeme Ltd for unrecovered capital investments made over the course of its concession. The Government remains steadfast in its commitment to honoring contractual obligations and ensuring that the transition is smooth and dispute-free.
A key component of the transition is UEDCL’s internal restructuring, which aims to enhance efficiency, eliminate role duplication, and ensure cost-effectiveness in electricity distribution.
The recruitment process has been fair, transparent, and merit-based, prioritizing the retention of skilled personnel essential for operational excellence.
Recognizing current power reliability challenges, the Ministry has directed Umeme Ltd to meet its contractual obligations until March 31, 2025. UEDCL is concurrently preparing to implement immediate corrective measures upon assuming control, ensuring that Ugandans experience a smooth transition with minimal service disruptions.
The Government remains committed to a stable and efficient electricity distribution sector that supports Uganda’s socio-economic transformation.
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