Umeme Limited is leaving Uganda after 20 years of electricity distribution. The Uganda Electricity Distribution Company Limited (UEDCL) will take over Umeme’s operations on April 1, 2025.
The Minister of Energy and Mineral Development, Hon Ruth Nankabirwa alongside officials from the ERA Uganda, officially handed over the Electricity Distribution License from Umeme Limited to Uganda Electricity Distribution Company Limited (UEDCL) on Tuesday, December 31, 2024.
“As you may recall, His Excellency, the President of the Republic of Uganda directed that all expiring private distribution concessions should not be renewed upon their natural expiry,” Nankabirwa told journalists at Uganda Media Centre in Kampala.
She said thus far, four concessions have already been returned to the Government and are now being managed by the UEDCL as highlighted by the CEO of the Electricity Regulatory Authority.
“We are now in the process of taking over the concession held by Umeme Limited, which will naturally expire on March 31, 2025,” she noted, adding: “To ensure a seamless transition, the Government will today officially handover the licenses for the distribution and sale of electricity in Uganda to UEDCL.”
According to Nankabirwa, this follows the determination of UEDCL’s applications and award of licenses by ERA Uganda.
“I wish to assure all Ugandans that we remain fully committed to the continuity of electricity services during this critical period. I extend my appreciation to Umeme Limited for its commendable work in loss reduction, improved revenue collection, infrastructure development system improvement, and advancing electricity access during its tenure.”
She said that to ensure a smooth workforce transition, the government has set the post-Umeme organisational structure with a total of 2,712 employment openings exclusively for UEDCL and Umeme employees, in line with the Lease and Assignment Agreement for a seamless asset retransfer.
The UEDCL Board is responsible for the recruitment of staff.
“I encourage all illegible employees of the two companies to express interest and/ or apply for the positions matching their qualifications and experience once advertised in the near future.”
Umeme Limited operated in Uganda for 20 years, from March 1, 2005, until April 1, 2025. Umeme was the main electricity distribution company in Uganda, responsible for the distribution, maintenance, and upgrade of electricity infrastructure.
Umeme’s concession was awarded as part of Uganda’s privatization of its power sector. The government informed Umeme in 2022 that it would not be extending the concession beyond March 2025.
During its time in operation, Umeme improved the efficiency of electricity distribution in Uganda, increasing it from 50% in 2005 to 83% in 2022. Umeme also reduced energy losses from 38% in 2005 to 18%.
