Recent media reports have sensationalized Uganda’s ongoing electricity distribution transition, with misleading claims suggesting a “war over the Umeme buyout figure,” “parliamentary probes into UEDCL’s readiness,” and even that “the Government is not ready for the Umeme handover.” These statements misrepresent the facts and undermine the deliberate, structured, and well-coordinated efforts of the Government of Uganda and its agencies, including the Ministry of Energy and Mineral Development (MEMD), the Ministry of Finance, Planning, and Economic Development (MoFPED), the Electricity Regulatory Authority (ERA) and the Uganda Electricity Distribution Company Limited (UEDCL).
Uganda is not in crisis mode regarding the transition. On the contrary, the government has put in place a comprehensive and risk-based strategy to ensure UEDCL’s smooth and effective takeover of the electricity distribution function by April 1, 2025.
Government Commitment and Financial Readiness
The Ministry of Finance, Planning, and Economic Development has secured USD 50 million through borrowing to support UEDCL’s capital investments. These funds will be available before March 31st, ensuring that UEDCL is financially equipped to enhance service quality and meet operational needs. Any notion that the transition is underfunded or poorly planned is not only inaccurate but also misleading and misguided.
Buyout Claims and Contractual Obligations
The buyout figure—Umeme’s payment for capital investments not recovered by the end of the concession—has been under audit by the Office of the Auditor General and is currently in the advanced stages of approval.
This process demonstrates the government’s commitment to honoring its contractual obligations and ensuring a fair and transparent settlement. It is important to note that such buyout processes are normal in concession agreements and do not indicate any dispute or “war” between parties, as some people are trying to sensationalize to create unnecessary anxiety.
UEDCL’s Capacity and Staffing Strategy
Concerns about UEDCL’s readiness and staffing capacity have also been exaggerated. The recruitment process currently underway is a strategic move aimed at enhancing operational efficiency, eliminating redundancies, and ensuring cost-effectiveness. The recruitment process is fair, transparent, and merit-based, ensuring that the Umeme qualified personnel are retained to uphold service reliability and efficiency. This process is no different from what happened when UEB was unbundled in the early 2000s.
Electricity Reliability and the Role of Umeme Until Handover
The government acknowledges current power reliability challenges and has taken steps to address them. Umeme remains contractually obligated to fulfill its duties until the end of March 2025, while UEDCL is ready and prepared to implement immediate interventions to stem blackouts and outages immediately upon handover. Although the concession agreement does not provide for GOU to step in to manage the network while Umeme is still a sitting concessionaire, this proactive approach will ensure service continuity, countering narratives that the transition is chaotic or unplanned.
A Managed, Structured, and Transparent Transition
The MEMD, MoFPED, ERA, and UEDCL have been at the center of this transition from the onset. ERA, as a government entity, cannot and does not cast doubt on the government’s readiness. Claims to the contrary are deliberate misinterpretations of facts. Uganda’s power sector is undergoing a historic and strategic shift, one that is guided by policy, backed by financing, and executed through coordinated inter-agency collaboration.
Rather than fuelling speculation and alarm, it’s important that writers focus on the opportunities this transition presents—from increased national oversight of electricity distribution to the potential for greater service efficiency and affordability. Uganda is not stepping into the unknown—it is stepping into a well-planned and well-executed future for its electricity sub- sector.
The facts are clear: The government is ready, committed, and financially equipped for the transition. Writers owe the public an accurate and balanced narrative, and ERA remains committed to providing transparent and factual updates throughout this process.
By J. Julius Wandera
Director Corporate & Consumer Affairs