The government has officially taken back the management and distribution of electricity following the conclusion of Umeme Limited’s 20-year concession.
The transition, which took place on March 31, 2025, marks the return of electricity distribution assets to the Uganda Electricity Distribution Company Limited (UEDCL), a government-owned entity.
The official handover ceremony was presided over by Hon. Dr. Canon Ruth Nankabirwa Ssentamu, the Minister for Energy and Mineral Development, at the National Control Centre in Kampala.
In her remarks, she described the transition as “a monumental step forward in attaining Uganda’s second energy sector reforms.”
She further highlighted that this shift is not merely a change in management but a “reaffirmation of our dedication to improving the well-being of our citizens.”
The End of Umeme’s 20-Year Concession
In 2005, the Ugandan government entered into a concession agreement with Umeme Limited, granting the private company the mandate to distribute and sell electricity across the country.
With the agreement naturally expiring, the government made the strategic decision not to renew the concession, opting instead for UEDCL to assume full control of electricity distribution.
According to Nankabirwa, the transition aligns with Uganda’s second-generation power sector reforms, which focus on enhancing financial sustainability, expanding electricity access, attracting investments, and improving service quality.
“This handover is not simply a shift in management, but a step towards further strengthening the infrastructure that powers our nation,” she emphasized.
Ensuring Service Continuity for Consumers
With concerns about service disruptions, Minister Nankabirwa assured electricity consumers that all measures had been put in place to ensure a smooth transition.
“The Yaka prepaid system, owned by the Government, will continue to operate without interruption,” she said.
“Customers can continue to purchase electricity units through the same channels, including MTN, Airtel, and other collection platforms,” she confirmed.
However, she noted that “Yaka” has now been replaced by “UEDCL Light” on mobile money platforms. Consumers are advised to follow the new procedures to access their electricity services seamlessly.
Government Financial Commitment
To facilitate this transition, the Ugandan government has made significant financial commitments.
Nankabirwa revealed that the Cabinet approved a borrowing of up to $190.1 million to finance Umeme’s buyout, while an additional $50 million has been allocated to support UEDCL’s investment requirements.
“The buyout amount of $118,385,306 has already been determined and paid to Umeme by the concession agreement,” she stated.
She also added that the government would also cover ongoing projects estimated at $9,785,298 once verified.
The Role of UEDCL in the New Era
UEDCL, established in 2001 and fully owned by the government, will now take full charge of electricity distribution at and below 33 kilovolts, as per the licenses issued by the Electricity Regulatory Authority (ERA) on December 31, 2024.
Eng. Irene Bateebe, the Permanent Secretary at the Ministry of Energy and Mineral Development, underscored the importance of this shift.
“Today’s handover is not just a change in management; it is a crucial step in advancing Uganda’s power sector reforms,” she said.
“By returning control to UEDCL, we are addressing key priorities, including sustainability, expansion of electricity access, reducing operational costs, and ensuring a government-run entity strengthens operational efficiency,” Bateebe added.
She further assured Ugandans that UEDCL had the expertise and capacity to manage the electricity distribution network effectively, given its experience handling various concessions.
“UEDCL has successfully taken over and managed five other concessions in recent years, proving its ability to transform and turn around rural service territories into commercially viable areas,” she noted.
Strengthening Uganda’s Electricity Infrastructure
The transition comes at a time when Uganda’s electricity sector is facing challenges related to power supply reliability, capacity constraints, vandalism, and natural disruptions such as bushfires.
To address these concerns, the government has secured $50 million from ABSA Bank to upgrade the electricity distribution network, improve reliability, and ensure supply quality.
Nankabirwa urged Ugandans to remain patient as UEDCL undertakes immediate repairs and network enhancements. “UEDCL will add more transformers and substations, replace rotten and leaning poles, and integrate ICT systems to improve efficiency and service delivery,” she stated.
Operational Strategy of UEDCL
Speaking at the event, UEDCL Managing Director Paul Mwesigwa, expressed confidence in the company’s ability to handle the new responsibility.
He emphasized that the Electricity Act, 1999, guides the company’s operations, and its asset ownership license issued by ERA.
“We are well-prepared for this transition. UEDCL has been operating a continuously expanding rural electricity distribution network, and we are committed to ensuring that electricity reaches all corners of the country efficiently,” he stated.
He further highlighted UEDCL’s track record in taking over concessions, including Ferdisult Engineering Limited, Bundibugyo Energy Cooperative Society, Pader Abim Community Multi-Purpose Energy Society, Kyegegwa Rural Energy Cooperative Society Limited, and
Kilembe Investments Limited. “With Umeme now becoming the sixth concession under UEDCL’s management, we are more than ready to make the ‘Big Switch’ a success,” he remarked.
The Managing Director also assured the public that all former Umeme service centers would remain operational under UEDCL.
“Out of the 51 service centers, 26 belong to UEDCL and will automatically revert to us. For the rented offices, landlords have been engaged to ensure continuity of service,” he said.
Regarding employment, UEDCL has absorbed over 2,200 former Umeme employees, ensuring minimal job losses and a smooth operational transition.
“To all the Umeme staff joining us, we say ‘Welcome home.’ Some of you started with UEDCL before moving to Umeme, and today, you are back where you belong,” he stated.
Looking Ahead: Uganda’s Electrification Vision
The government’s long-term vision for the electricity sector remains focused on achieving universal access to reliable and affordable power.
There are plans to intensify grid expansion, invest in infrastructure development, and implement a hybrid connections program to improve access.
“We are implementing the Electricity Access Scale-Up Project (EASP), which will see 1.2 million customers added to the distribution grid,” Eng. Bateebe revealed.
The retransfer of assets from Umeme to UEDCL represents a significant milestone in Uganda’s energy sector transformation.
As Nankabirwa noted, “This transition is not just about a name change, it is about empowering Ugandans with a sustainable, accessible, and affordable electricity supply that will drive socioeconomic development.”
As the country embarks on this new era of electricity distribution, all eyes will be on UEDCL to see how it delivers on the government’s promise of an efficient and reliable power supply.
