his Monday morning, Umeme will officially hand over Uganda’s electricity distribution infrastructure to the government, following the receipt of a $118 million payout last Friday.
The handover ceremony will be held at the Umeme Lugogo office in the Industrial Area, Kampala. Energy Minister Ruth Nankabirwa, Umeme Managing Director Selestino Babungi, and other Energy Ministry officials are expected to attend the event.
According to Jonan Kizza, spokesperson for the Uganda Electricity Distribution Company Limited (UEDCL), the government disbursed the agreed amount as part of the buyout process, signaling the end of Umeme’s 20-year concession. The remaining $9 million will be paid upon completion of ongoing infrastructure projects, bringing the total buyout to $127 million. This is substantially lower than the $190 million initially anticipated by Umeme, and significantly less than the $234 million the company had claimed.
“This morning’s handover event confirms that both parties are now on the same page,” Kizza said, addressing weeks of uncertainty surrounding Umeme’s insistence on receiving full payment before relinquishing control of the electricity distribution system.
The transition follows months of negotiations between Umeme and the government over the true value of the buyout. Last Thursday, Auditor General Edward Akol presented the final audit report to the Speaker of Parliament, recommending a buyout of only $118 million. This amount was based on a thorough review and validation of Umeme’s claims.
Umeme’s 20-year concession officially ended on February 28, 2025. Since then, Uganda has been in a Retransfer Transition Period. UEDCL, the state-owned entity that originally managed electricity distribution before the Umeme concession, will take over operations formally on April 1, 2025
Earlier last week, Umeme had warned it would only relinquish the distribution system after receiving full payment, citing provisions in the Concession Agreements that penalize delays in fulfilling the buyout obligation beyond the March 31 deadline. However, Minister Nankabirwa reaffirmed the government’s position, stating that only the Auditor General’s assessed amount of $118 million would be honored.
“We shall ONLY execute what the Auditor General has audited—which is $118 million—as the buyout amount for Umeme,” she emphasized, ensuring that the transition would proceed as schedule
UEDCL has assured the public that electricity services will remain uninterrupted during and after the transition. “Electricity vending and loading will continue normally via MTN, Airtel, banks, and other collection platforms,” UEDCL confirme
Despite the handover, there remains significant public concern about potential disruptions to electricity supply as Uganda transitions from a private distributor to full government control. However, UEDCL has pledged to maintain continuity and stability as it assumes full operational control starting April 1, under ERA Licenses No. ERA/LIC/DIS/024/231 and ERA/LIC/DIS/024/232.
As Umeme’s controversial yet pivotal two-decade run comes to an end, all eyes are now on UEDCL and the government to ensure reliable power delivery and usher in a new era for Uganda’s electricity sector.
