Uganda’s Electricity Distribution Transitions from Umeme to UEDCL: A New Era Begins
Dr. Patrick Bitature, Chairman of the Board of Directors at Umeme Limited, confirmed that the Government of Uganda has finalized the buy-out amount for Umeme following an extensive audit by the Office of the Auditor General. He stated: "After a detailed audit, the Office of the Auditor General has finalized the buy-out amount for Umeme, ensuring financial decisions are based on verified figures. The Government of Uganda has already paid the agreed amount of USD 118.4 million." This payment signifies the official closure of Umeme’s operations in Uganda, allowing UEDCL to take full charge of the distribution network.
As of April 1, 2025, Uganda's electricity distribution landscape undergoes a significant transformation as the Uganda Electricity Distribution Company Limited (UEDCL) assumes control from Umeme Limited, concluding a 20-year concession. This transition, initiated by the Ugandan government's decision not to renew private distribution licenses, aims to enhance service delivery and reduce electricity tariffs for consumers.
In 2005, Umeme Limited entered a 20-year concession agreement with the Ugandan government to manage electricity distribution. With the concession's expiration on March 31, 2025, the government opted to transfer this responsibility back to the state-owned UEDCL. Energy Minister Ruth Nankabirwa highlighted that this move aligns with efforts to lower power tariffs and improve service reliability, addressing concerns over high costs and frequent power outages that have affected citizens and industries alike.
To facilitate a seamless transition, the government agreed to a buyout amount of USD 118.4 million for Umeme's investments, ensuring financial obligations are met. Additionally, a comprehensive workforce integration plan has been established, with 2,712 employment positions allocated exclusively for UEDCL and Umeme employees. This initiative aims to retain experienced personnel, ensuring continuity and stability in electricity distribution operations.
Remarks by Dr. Patrick Bitature
Finalized Buy-Out Agreement
Dr. Patrick Bitature, Chairman of the Board of Directors at Umeme Limited, confirmed that the Government of Uganda has finalized the buy-out amount for Umeme following an extensive audit by the Office of the Auditor General. He stated:
"After a detailed audit, the Office of the Auditor General has finalized the buy-out amount for Umeme, ensuring financial decisions are based on verified figures. The Government of Uganda has already paid the agreed amount of USD 118.4 million."
This payment signifies the official closure of Umeme’s operations in Uganda, allowing UEDCL to take full charge of the distribution network. Dr. Patrick Bitature, Chairman of the Board of Directors at Umeme Limited, reflected on the company's 20-year journey, expressing pride in their accomplishments and acknowledging the ongoing negotiations to finalize the transition.
On the Concession: “I'm glad we have delivered a 20-year concession; we are proud of our accomplishment. We still have a bit of work to do; some people feel that the negotiations have got to continue, and they will.”
On Workforce Transition: “80% of our staff have been absorbed. We are handing over to you a well-looked after, manicured mindset changed staff. I hope they deliver and I know they will.”
On Corruption and Governance: “When I joined the board, we were number one in corruption, above the police and other institutions. We then adopted a zero policy on corruption and I made it my personal business to get involved.”
For Ugandan electricity consumers, the transition promises several potential benefits:
Tariff Adjustments: UEDCL has committed to focusing on efficiency and reducing losses, which could lead to lower electricity tariffs over time.
Service Continuity: Existing prepaid electricity units purchased under Umeme will remain valid, and the methods of purchasing power—through mobile money platforms, banks, and agents—will continue unchanged, albeit under the UEDCL brand.
Enhanced Service Delivery: UEDCL aims to improve service reliability and response times, addressing previous challenges such as frequent blackouts and slow repairs.
The government envisions achieving 80% electricity access within three years and universal access by 2030, in line with Vision 2040 and the National Development Plan III Electrification Strategy. This ambitious goal involves expanding and rehabilitating infrastructure, including substations, transformers, lines, and poles, to mitigate service interruptions.
The handover from Umeme Limited to UEDCL marks a pivotal moment in Uganda's energy sector, reflecting a strategic shift towards public management of electricity distribution. With commitments to improved service delivery, reduced tariffs, and expanded access, this transition holds the promise of a brighter and more electrified future for all Ugandans.
