Prime Minister Robinah Nabbanja has abruptly suspended the Ministry of Energy and Mineral Development’s alleged plan to hire a new private company to manage the national power grid, intervening amid reports of intense infighting and high-level efforts to replace the Uganda Electricity Distribution Company Limited, or UEDCL.
In a sharply worded letter dated Dec. 3, 2025, Nabbanja directed Energy Minister Ruth Nankabirwa to immediately cease all plans regarding the reintroduction of private partnerships or joint ventures in power distribution. The prime minister noted that such a significant policy shift had apparently been mooted without the required authorization from the Cabinet and President Yoweri Museveni.
“Wait until the end of this election period for further guidance from the Cabinet and His Excellency the President on this matter,” Nabbanja wrote, emphasizing that the decision must await the conclusion of the government’s Rationalization of Agencies and Public Expenditure policy.
Internal Power Struggle
Nabbanja’s intervention comes just six months after the government took over the electricity grid, following the expiration of Umeme’s 20-year concession on April 1.
Sources inside UEDCL indicate that the proposed privatization was spurred by a fierce internal struggle, with “bigwigs” reportedly fighting to introduce a new investor to manage the lucrative distribution network. The sources claimed that these individuals were actively trying to frustrate UEDCL’s operations and create “panic and job unrest” to label the state-owned company a failure.
Reports suggest that up to five companies were eyeing the deal, allegedly fronted by multiple ministers. The intense lobbying effort reportedly included flying sections of stakeholders to Dubai for all-expenses-paid trips to secure consideration.
Last month, an internal memo from UEDCL’s top management reportedly triggered panic when it suggested the firm was unable to manage the entire network and was engaging the energy ministry to explore investor options.
The prime minister’s directive also targeted planned mass terminations within UEDCL’s senior management team.
Nabbanja instructed Minister Nankabirwa to halt the termination of senior staff, which was reportedly based on a confidential performance review report compiled by the Electricity Regulatory Authority, or ERA.
Nabbanja warned that the “proposed massive termination” would cause significant destabilization to the UEDCL workforce, potentially leading to increased power outages and adversely affecting both the industrial sector and the government’s reputation.
She further instructed the UEDCL board to stop all related processes and instead support the current senior management team to stabilize the network, which she noted Umeme left in a “sorry operational state.” Nabbanja requested a copy of the ERA report that the ministry relied on for the planned terminations.
The Ministry of Energy, through its assistant commissioner of communications and information management, Dr. Patricia Litho, confirmed it had received the prime minister’s letter and the ERA performance assessment.
Litho stated that the ministry had directed the UEDCL board to investigate the identified lapses, make corrective actions, and restore confidence in the company.
However, the ministry’s statement was silent regarding the alleged plan to introduce a new private distribution company. Updates, Litho said, would be provided after the internal review process is completed.
The government’s decision to take over power distribution followed a 2022 cabinet decision, backed by President Museveni, not to renew private player concessions, including Umeme, citing concerns over high returns on investment.
