KAMPALA, March 19, 2025 – The Ugandan government has reaffirmed its readiness to take over electricity distribution from Umeme Limited through the Uganda Electricity Distribution Company Limited (UEDCL) by April 1, 2025.
According to a statement from the Ministry of Energy and Mineral Development (MEMD), the Ministry of Finance is in the final stages of securing $50 million through internal borrowing to support UEDCL’s capital investments. In a statement released today, these funds, expected to be available by next week, will help ensure improved service quality once the transition is complete.
The 20-year concession with the prime electricity distributor, which was condemned by whistle blowers and investigated by Parliament with recommendations for its termination, is ending due on 31st March 2025.
Additionally, the government is working on a “Buy-out amount” for Umeme, which compensates the company for unrecovered capital investments made during the concession. The statement emphasized the government’s commitment to fulfilling its contractual obligations while ensuring a smooth transition.
Addressing staffing concerns, the MEMD assured the public that UEDCL’s restructuring process is designed to enhance efficiency, prevent role duplication, and optimize costs. The recruitment process, it said, has been fair and merit-based, prioritizing operational effectiveness.
The Ministry also acknowledged recent power reliability challenges and has directed Umeme to continue meeting its contractual obligations until the end of March 2025. Meanwhile, UEDCL is preparing to implement immediate corrective measures starting April 1, 2025.