The Ministry of Energy and Mineral Development (MEMD) has reaffirmed the government’s readiness to take over the electricity distribution concession from Umeme Ltd through its agency, the Uganda Electricity Distribution Company Limited (UEDCL), effective April 1, 2025.
The Ministry of Finance, Planning, and Economic Development is in the advanced stages of securing US$50 million through internal borrowing to support UEDCL’s capital investments.
According to Ruth Nankabirwa, the Minister of Energy, these funds will be available by the end of next week to ensure that UEDCL is financially equipped to improve service quality.
“Parliament is in the final stages of approving the Buyout amount, which will facilitate the timely payment to Umeme. This Buyout amount represents a claim by Umeme for capital investments made but not recovered by the end of the concession. This confirms the government’s unwavering commitment to honoring its contractual obligations while ensuring a smooth transition in the electricity distribution sector,” she said.
The Ministry emphasizes that UEDCL’s restructuring aims to enhance efficiency, eliminate duplication of roles, and ensure cost-effectiveness in electricity distribution. The recruitment process has been fair, transparent, and merit-based, ensuring that the most qualified personnel are retained while prioritizing operational efficiency.
The Ministry acknowledges the current power reliability challenges and has directed Umeme to continue fulfilling its contractual obligations until March 2025 while preparing UEDCL for a seamless transition.
