Kampala, Uganda – The Government of Uganda has reaffirmed its full readiness to take over the electricity distribution concession from UMEME Limited through the Uganda Electricity Distribution Company Limited (UEDCL) effective April 1, 2025.
In a press statement issued on March 19, 2025, the Ministry of Energy and Mineral Development (MEMD) assured the public that all necessary measures have been put in place to ensure a smooth transition.
The Ministry of Finance, Planning, and Economic Development is finalizing arrangements to secure $50 million through internal borrowing to support UEDCL’s capital investments.
These funds are expected to be available by next week to enhance service delivery and system upgrades.
Additionally, Parliament is in the final stages of approving the buy-out amount to compensate UMEME for unrecovered capital investments.
This move demonstrates the government’s commitment to fulfilling its contractual obligations while ensuring continuity in power distribution services.
To guarantee operational stability, UEDCL has already recruited over 60% of UMEME’s workforce, filling approximately 2,700 positions across senior management, technical, and junior levels.
The Ministry emphasized that the recruitment process has been transparent and merit-based, aimed at maintaining efficiency while eliminating role duplication.
Despite concerns about power reliability, MEMD has directed UMEME to continue fulfilling its contractual obligations until the end of March.
UEDCL is expected to implement immediate corrective measures from April 1 to address service gaps and improve electricity distribution.
Dr. Patricia Litho, Assistant Commissioner for Communications and Information Management at MEMD, reaffirmed the government’s preparedness for the transition.
All eyes will be on UEDCL’s ability to efficiently manage and improve electricity services nationwide as Uganda embarks on this major shift in power distribution.
