KAMPALA, Uganda — A dispute has emerged over the buyout amount for Umeme Limited, Uganda’s exiting electricity distributor, with the company expecting $234 million and Parliament approving only $118 million.
Umeme’s 20-year concession for electricity distribution ended on February 28, 2025, and the company is currently in the Retransfer Transition Period. In a statement, Umeme said it submitted an Estimated Buy Out Amount of $234 million, which is currently undergoing audit by the Government of Uganda through the Office of the Auditor General.
“The audit process is still ongoing, and we await their report before final reconciliation. Upon receiving the audit report from the Government of Uganda, Umeme will review the findings and determine the necessary course of action, if any,” the statement said.
However, the Auditor General’s report, received by Speaker of Parliament Anita Annet Among, recommends the lower payment of $118 million. Speaker Among said Parliament will only approve the payment of $118 million, and nothing more.
Umeme warns that its rights to the Distribution System will only terminate once the Buy Out Amount is paid by the Government of Uganda and received by Umeme. The company emphasizes that the payment must be made by March 31, 2025, to avoid penal interest.
“The Buy Out Amount must be paid within 30 days following the end of the concession term, specifically by 31st March 2025. If the payment is not received by this deadline, penal interest will be applied as stipulated in the Concession Agreements,” Umeme said.
Meanwhile, Minister of Energy Ruth Nankabirwa has urged Umeme to minimize outages during the transition period. “Statement on the current power supply constraints in the country and interventions. Nevertheless, I implore Umeme Ltd as the main distributor to minimize outages as they remain under concession until 1st April 2025. Finish strong!” she said.
Speaker Among also asked Uganda Electricity Distribution Company Limited (UEDCL) “to offer better services after the exit of Umeme.” Deputy Speaker Thomas Tayebwa instructed the Clerk to Parliament to extract and forward the resolution to government for immediate action.
