On March 31st, Umeme handed over to Uganda Electricity Distribution Company Limited (UEDCL) at a public event in Kampala.
The transition of Uganda’s electricity distribution from Umeme Limited to the Uganda Electricity Distribution Company Limited (UEDCL) marks a significant shift in the country’s power sector. This move follows the expiration of Umeme’s 20-year concession in March 2025 and the beginning of a new era in Uganda’s power sector under full government control.
Here are 10 key things you should know about the handover process to help you fully understand this major shift.
1. UEDCL replaces Umeme.
All current Umeme customers will be moved to UEDCL. In a public event, Umeme ceremoniously handed over to UEDCL.In 2005, the Government of Uganda entered into a 20-year concession with Umeme Limited, entrusting the company with the distribution and sale of electricity across the country. As this concession naturally concludes, UEDCL established in 2001 and owned by the Government will assume full responsibility for the sale and distribution of electricity at and below 33 kilovolts as per the licenses issued by the Electricity Regulatory Authority on 31 December 2024.
UEDCL will be the official distributor effective April 1, 2025, as per ERA licenses NO ERA/LIC/DIS/024/231& ERA/LIC/DIS/024/232. In a transmission notice, UEDCL advised the Public to be cautious and watch during the transition period, as unauthorized individuals may act as UEDCL officials attempting to remove electricity meters from homes or falsely claiming that units will stop working.
2. Umeme Buyout Payment
Umeme Public Notice on 30th March 2025, indicated it invoiced for and received the Government’s admitted sum of USD 118,385,603. Umeme submitted an estimated Buy Out Amount of USD 234 million. The said amount was subject to an audit by the Government of Uganda and thereafter a final reconciliation including taking into account certain additional sums due to Umeme.
As confirmed by the Auditor General’s final report to Parliament on March 27, 2025, the Ugandan government has officially set the Umeme buyout amount at USD 118,385,603, with an additional USD 9,785,298 in excluded costs pending verification.
This determination follows extensive audits and represents the government’s binding valuation for the concession termination, though Umeme retains the right to contest through dispute resolution mechanisms. Umeme disputes, amongst several things, the audited figure in the OAG’s Report and has informed the Government of Uganda, that the Company will issue a formal Notice of Dispute to the Government by the terms of Section 9.1 of the Support Agreement.
3. Yaka” rebranding to “Light”
In a major rebranding move coinciding with the transition from Umeme to Uganda Electricity Distribution Company Limited (UEDCL), the Ministry of Energy and Mineral Development has announced that electricity tokens will now be sold under the name “Light” instead of the familiar “Yaka” brand. Energy Minister Hon. Ruth Nankabirwa confirmed that starting April 1, 2025, prepaid electricity customers will see “UEDCL Light” displayed on mobile money and telecom menus when making payments.
The rebranding to “Light” is designed to ensure a smooth handover while establishing UEDCL’s new identity in the market. Customers were assured of the same token purchase process, albeit under the fresh branding, as the state-owned distributor takes charge of service delivery. The Ministry emphasized that this update is part of broader reforms to streamline operations under UEDCL’s management, with no immediate changes to pricing or distribution systems. However, the move signals the government’s commitment to a new era in Uganda’s electricity sector under full public control. According to Energy Minister Hon Ruth Nankabirwa, consumers should not be shocked to find “UEDCL Light” on telecom menus when purchasing electricity.
4. Umeme Counter Suspended on Uganda’s Stock.
In their public notice, the Uganda Securities Exchange suspended the Umeme Ltd counter for 2 weeks effective Monday 31st March 2025 to enable the company to address key concerns regarding price-sensitive information and to mitigate the potential impact of the end of the concession period. Umeme is expected to submit a progress report to the Exchange regarding the current state of affairs of the company and any proposed action. The involuntary suspension of the counter by the USE is made in the interest of investor protection and maintaining the transparency of the market. According to the Uganda Securities Exchange, the suspension is based on the ongoing public speculations regarding the need for the Umeme concession and the determination of the final buy-out plan.
5. Government plan
According to Hon. Dr Canon Ruth Nankabirwa Ssentamu, Uganda’s Minister for Energy and Mineral Development, the government’s strategic objectives following the successful handover from Umeme to UEDCL will be: enhance financial sustainability by strengthening revenue collection and operational efficiency to ensure the long-term viability of the power sector; expand electricity access by prioritizing grid extension to underserved communities and accelerating Uganda’s electrification agenda; attract investment by creating an enabling environment for both domestic and international investors across the energy value chain; and improve service quality by driving targeted investments in generation, transmission, and distribution infrastructure to enhance reliability and reduce outages.
6. Why Is Umeme Exiting Uganda?
Umeme’s 20-year concession (2005–2025) ended, and the government chose not to renew it, opting instead for a state-led distribution model under UEDCL. Uganda Electricity Distribution Company Limited (UEDCL) is a government-owned entity responsible for electricity distribution.
7. What Happens to Umeme’s Assets?
Umeme was handed over to UEDCL on March 31st,2025. All distribution assets are back to UEDCL including branches and meters, as per the concession agreement. Umeme has been operating under a Build, Operate, and Transfer (BOT model. Service centers currently operated by Umeme will remain fully operational under UEDCL, ensuring that customers continue to receive support and services as needed. Additionally, electricity tariffs will periodically be determined by the regulator and customers will still be able to make payments through the same methods used today. Existing prepaid meters will remain functional.
8. Current unreliable power challenges
Hon. Dr. Canon Ruth Nankabirwa Ssentamu, Uganda’s Minister for Energy and Mineral Development said her Ministry together with its partners, is prioritizing urgent upgrades to enhance system capacity and reliability. It is in this vein that GoU has mobilized 50 M USD from ABSA Bank to address the current network deficiencies and improve the reliability and quality of electricity supply. UEDCL has assured the public of continued stability, but challenges in the initial transition phase could lead to occasional outages.
9. Will Umeme Staff Be Retained?
UEDCL is also absorbing some of Umeme’s employees, but there may be restructuring to align with the new management structure.
10. Umeme AGM
Umeme notice has mentioned their Annual General Meeting scheduled for 22nd May 2025. The Umeme Board has pledged to ensure an accurate and appropriate return for its shareholders and is optimistic that the matters in dispute will be resolved during a 30-day good faith negotiations period or in any event subsequently by an arbitral tribunal in London.
Conclusion
The Umeme-UEDCL handover is a major shift in Uganda’s power sector. While the government promises better services, the transition’s success will depend on effective management, funding, and consumer cooperation. Stakeholders, including businesses, shareholders, and households, should stay informed to navigate any changes smoothly.
According to Eng. Irene Bateebe, Permanent Secretary of the Ministry for Energy and Mineral Development: Uganda’s future investments in the energy infrastructure will include ongoing plans to invest in grid intensification and densification to improve network coverage. Ministry for Energy and Mineral Development will continue with its efforts to implement the EASP which will see 1.2 million customers added to the distribution grid.
