KAMPALA, Uganda — Umeme Limited, Uganda’s main electricity distributor, said Monday it has accepted a $118 million buyout offer from the government, despite initially expecting $234 million.
In a statement, Umeme said it had been compelled by the government to hand over its distribution system to the Uganda Electricity Distribution Company Limited (UEDCL) today.
Related posts
“The company has, without prejudice, invoiced for and received the government’s admitted sum of $118,385,603,” Umeme said.
However, Umeme disputed the audited figure and informed the government of its intention to appeal. “Umeme has informed the Government of Uganda that the Company will issue a formal Notice of Dispute in accordance with the terms of the Support Agreement,” the statement read.
Speaker of Parliament Anita Annet Among said Parliament would only approve payment of the audited amount. “We will only okay the payment of that particular sum, and nothing more,” she said.
Minister of Energy Ruth Nankabirwa welcomed the development, urging UEDCL to offer better services. “I implore UEDCL to offer improved services to Ugandans,” she said. Earlier, Nankabirwa had challenged Umeme to “finish strong” during its remaining time under concession.
“I implore Umeme Ltd as the main distributor to minimize outages as they remain under concession until 1st April 2025,” she said.
The Auditor General’s report had recommended a reduced buyout amount, citing discrepancies in Umeme’s initial estimate of $190 million. Parliament subsequently approved the report, paving the way for the handover.
Umeme’s concession ended on February 28, 2025, and the company is expected to hand over the distribution system to UEDCL later today.
