The Uganda Electricity Distribution Company Limited (UEDCL) is seeking to recover approximately Shs30 billion owed to it by government agencies and other organisations, as the electricity distributor faces growing pressure from traders over persistent power outages and unreliable electricity supply.
The financial claims come at a time when businesses and households are increasingly frustrated by frequent blackouts, power fluctuations and delays in new electricity connections, with traders now demanding the immediate resignation of the company’s acting Managing Director, Eng. Joselynne Rwabwogo.
UEDCL says recovering the outstanding Shs30 billion would help ease financial constraints and support its efforts to strengthen electricity distribution and improve service delivery.
Speaking at a media briefing in Kampala, Rwabwogo said the company’s customer base had grown from 1.64 million in 2021 to approximately 2.8 million, representing an increase of about 71 per cent in five years.
She acknowledged that the rapid expansion had placed considerable pressure on the existing distribution network, with some areas struggling to cope with rising electricity demand.
Among the interventions underway is the construction of an additional eight-kilometre power line in Gayaza to reduce pressure on the existing network by redirecting some demand to a substation with spare capacity.
UEDCL is also engaging the Uganda Electricity Transmission Company Limited (UETCL) over congestion along the Masaka Road corridor.
Other areas earmarked for improvements include Namugongo and communities along the Gayaza corridor, particularly Nakwero, Kiwologooma, Kitukutwe, Kijabijjo and Busukuuma. The Kakiri corridor, stretching from Kabulengwa to Wamala, has also been identified for interventions.
The company says it has recorded improvements in Seeta, Bukerere, Kawanda, Mbarara and Bombo. In Mubende, network adjustments reportedly reduced monthly outages from 12 to three.
It has also completed emergency repairs on underground electricity cables that had affected supply in Entebbe, Namasuba and Kisubi.
Despite the planned interventions, traders under the National Entrepreneurs and Traders Association (NETA) Uganda say unreliable electricity supply continues to disrupt businesses and damage electrical equipment.
NETA President and Founder, Dr Thadeus Musoke Nagenda, has called for Rwabwogo’s immediate resignation, accusing her of failing to ensure stable and reliable electricity supply.
Speaking to journalists on Thursday, Musoke said frequent blackouts, particularly during the ongoing rainy season, had disrupted business operations, while power fluctuations whenever electricity is restored were damaging traders’ appliances and equipment.
“We are calling for the immediate resignation of the acting MD UEDCL Eng Rwabwogo over her failure to provide stable and reliable power supply to the community,” Musoke said.
He said traders had initially welcomed her appointment, hoping it would bring improvements in electricity distribution, but claimed the situation had instead worsened.
NETA is also calling for a government investigation and an independent audit of UEDCL’s operations to establish the causes of recurring outages and determine whether the distributor is effectively managing its resources.
Musoke said the association had started collecting complaints from traders who claim to have lost merchandise and equipment because of electricity interruptions.
He urged affected business owners to submit their complaints through NETA’s offices, online portal or email to enable the association to document the losses and pursue accountability.
Beyond the complaints from traders, UEDCL says ageing infrastructure, increasing customer demand and shortages of essential equipment continue to affect its ability to deliver reliable electricity.
The company reported replacing 1,110 distribution transformers in the year ending July 2026, exceeding its target of 853.
It further says the average transformer replacement period has reduced from 38 days at the end of June to less than 14 days by the end of August.
However, securing sufficient transformers remains a challenge, with local manufacturers struggling to match growing demand.
UEDCL is reviewing its procurement arrangements and consulting the Public Procurement and Disposal of Public Assets Authority (PPDA) on additional sourcing options while encouraging local manufacturers to increase production.
The distributor is also working to clear a backlog of new electricity connection applications that accumulated partly because of limited meter supplies.
Chief Commercial and Operations Officer Isaac Katewanga said the available meter stock was sufficient to support installations, adding that the company was working with the Uganda National Bureau of Standards to speed up testing and clearance.
He said UEDCL had connected approximately 80,000 customers in the past two months and was targeting 50,000 new connections per month by December
Looking beyond the immediate challenges, UEDCL estimates that it requires approximately US$994 million, equivalent to about Shs3.7 trillion, over the next five years to expand the distribution network, replace ageing equipment and improve electricity reliability.
About US$107 million has been earmarked for priority projects expected to be implemented by December 2027.
The company says the investments will support growing electricity demand from households, industries, businesses, healthcare facilities and agricultural enterprises.
UEDCL has also pointed to changes following the return of electricity distribution to public management, including a reduction in the end-user electricity tariff from approximately Shs486 to Shs396 per unit, representing a decline of nearly 19 per cent.
However, the planned investments and reported improvements have yet to fully address consumer frustrations over unreliable supply.
The Shs30 billion it is seeking to recover from government agencies and other organisations, coupled with growing infrastructure requirements and demands for compensation from affected traders, places additional pressure on the distributor.
For UEDCL, the bigger test will be whether its recovery efforts and infrastructure investments translate into fewer blackouts, faster electricity connections and more reliable power for businesses and households.
