The Government of Uganda has reaffirmed its full readiness to take over the electricity distribution concession from Umeme Ltd, effective April 1, 2025. This transition will be facilitated through the Uganda Electricity Distribution Company Limited (UEDCL), the Ministry of Energy and Mineral Development (MEMD) announced on Wednesday.
In a press statement, Ruth Nankabirwa, Minister of Energy and Mineral Development emphasized the ministry’s commitment to ensuring a smooth and efficient transition in electricity distribution services across the country.
Ruth Nankabirwa reassured the Nation that the Ministry of Finance has already secured the US$50Million required for UEDCL operations. These funds will be available by the end of next week, ensuring UEDCL functions and operations are fully ready to take over from Umeme on April 1st 2025.
“The Ministry of Finance, Planning, and Economic Development is in advanced stages of securing US$50 million through internal borrowing to support UEDCL capital investments. By the end of next week, these funds will be available to ensure that UEDCL is financially equipped to improve the quality of service,” MEMD stated.
Nankabirwa also noted that the government is working closely with Parliament to finalize the approval of the Buy-out amount, a claim by UMEME for capital investments made but not recovered by the end of the concession period.
“This further confirms the Government’s unwavering commitment to honouring its contractual obligations while ensuring a smooth transition in the electricity distribution sector,” she said.
Addressing staffing concerns, the Ministry assured the public that UEDCL’s restructuring process is designed to enhance efficiency and avoid duplication of roles, while ensuring cost-effectiveness in electricity distribution. It added that the recruitment process has been transparent and merit-based.
“The best-qualified personnel are retained while prioritizing operational efficiency,” she emphasized.
The Ministry also acknowledges current power reliability challenges and has directed UMEME to fulfill all contractual obligations until the end of March 2025. UMEME is required to maintain stable service delivery while UEDCL prepares to assume full operations, with corrective measures expected to take effect from April 1, 2025.
