Patrick Bitature Expresses Discontent Over UMEME Buyout as UEDCL Takes Over
UMEME Limited Chairman, Patrick Bitature, has voiced dissatisfaction with the government’s buyout offer, stating, “This is not what we expected.” Bitature made these remarks on Monday at UMEME’s headquarters during the official handover of duties to the Uganda Electricity Distribution Company Limited (UEDCL). The handover ceremony was officiated by the Minister for Energy and Mineral Development, Hon. Ruth Nankabirwa.
By Friday, the government had deposited USD 120 million (Shs 440 billion) into UMEME’s account, following a special audit by the Auditor General that revised the buyout figure from USD 190 million to USD 118 million. This adjustment has led to concerns among UMEME’s leadership.
Bitature, who has been at the helm of UMEME’s transition, acknowledged the challenges but emphasized the company’s contributions over the past 20 years. Since taking over in 2005, UMEME has significantly expanded electricity access from less than 5% to 25%, reduced energy losses from 38% to about 15%, and invested over USD 800 million in infrastructure to improve reliability.
While expressing disappointment in the reduced buyout amount, Bitature thanked shareholders, including NSSF, for their patience and trust. He reassured them that the remaining balance would be settled amicably through government mediation. “In case of any challenges, the agreement provides for arbitration,” he noted.
As UMEME exits, UEDCL is now set to take over electricity distribution, marking a new era for Uganda’s power sector. The transition comes with expectations of continued improvements in service delivery and infrastructure investment.
UMEME’s Managing Director, Selestino Babungi, reflected on the company’s journey, highlighting the sector’s transformation. “In 2005, we were given a very small switch. Today, we are handing over a very big switch. The industry faced major efficiency challenges, low connectivity, limited technical capacity, and lack of investment, making the electricity sub-sector unviable. You gave me 250,000 customers, and I’m handing over 2.2 million customers,” he said.
With UEDCL taking over, all eyes are now on how the government-owned entity will sustain and build upon UMEME’s achievements while addressing concerns about efficiency and investment in Uganda’s power sector.
