KAMPALA, Uganda — Energy Minister Ruth Nankabirwa announced Wednesday that the government is fully prepared to take over the Umeme concession through the Uganda Electricity Distribution Company Limited (UEDCL) by April 1, 2025.
The Ministry of Energy and Mineral Development reaffirmed its commitment to improving service quality, ensuring a smooth transition, and addressing power reliability challenges.
To support UEDCL’s capital investments, the Ministry of Finance, Planning, and Economic Development is in advanced stages of securing $50 million through internal borrowing. The funds are expected to be available by the end of next week, ensuring UEDCL is financially equipped to improve service quality.
Additionally, the approval of the buyout amount by Parliament is in advanced stages to support the timely payment of Umeme. The buyout amount is a claim by Umeme for capital investments made and not recovered by the end of the concession.
This move demonstrates the government’s commitment to honoring its contractual obligations while ensuring a seamless transition in the electricity distribution sector.
Regarding staffing concerns, the Ministry emphasized that UEDCL’s restructuring process aims to enhance efficiency, avoid duplication of roles, and ensure cost-effectiveness in electricity distribution. The recruitment process has been fair, transparent, and merit-based, prioritizing operational efficiency and ensuring that the best-qualified personnel are retained.
The Ministry acknowledged current power reliability challenges and has required Umeme to continue fulfilling its contractual obligations until the end of March 2025. Meanwhile, UEDCL is preparing to take over and ensure immediate corrective measures after April 1, 2025.
