The government has reaffirmed its readiness for the Uganda Electricity Distribution Company Limited (UEDCL) to take over electricity distribution from Umeme Ltd on April 1, 2025.
The Ministry of Energy and Mineral Development (MEMD) announced that preparations for the transition are in advanced stages. The Ministry of Finance, Planning, and Economic Development is finalizing a $50 million internal borrowing arrangement to support UEDCL’s capital investments.
"By the end of next week, these funds will be available to ensure that UEDCL is financially equipped to improve the quality of service," the ministry stated.
Parliament is also reviewing the approval of Umeme’s buyout amount, which covers unrecovered capital investments made during its concession. The government assured that it remains committed to fulfilling all contractual obligations to ensure a smooth transition.
Addressing staffing concerns, the ministry emphasized that UEDCL’s restructuring aims to enhance efficiency, eliminate role duplication, and ensure cost-effectiveness. It assured that the recruitment process has been fair, transparent, and merit-based, prioritizing qualified personnel.
The government also acknowledged current power reliability challenges and directed Umeme to fulfill its contractual obligations until March 2025. Meanwhile, UEDCL is preparing to implement immediate corrective measures after assuming control in April.
