UMEME Limited gave all its assets to Uganda Electricity Distribution Company Limited on March 31, 2025. They held the transfer ceremony at UMEME's Lugogo office in Kampala. This event ended UMEME's 20-year private management deal. The government will run power distribution from here forward through UEDCL, which it already controls.
Since 2005, UMEME has helped change Uganda's energy world. They boosted electricity access from just 12% to more than half the country. Millions of people connected to power for the first time because of them. Yet many Ugandans complained about high prices and service cuts throughout those years. The government wanted to take back control of this key system after hearing these concerns.
Selestino Babungi, who runs UMEME, talked about what they achieved. His company spent $850 million on improvements. They expanded from 5,000 transformer areas to 17,000. Their customer count jumped from 250,000 to 2.2 million. He praised their safety record and mentioned cutting energy losses from 38% down to 16%.
Babungi warned about coming challenges. Uganda needs more electricity fast, as demand grows 10% every year. The country makes about 1,200 MW, but peak use already hits 700 MW. He believes Uganda will face power shortages within three years unless it starts new projects right away. Plans exist to import electricity from Ethiopia, but these connections remain under construction.
Patrick Bitature, UMEME's Board Chairman, shared financial details about the transfer. The government paid them $118 million as part of buying the assets. He promised this cash "will not be touched because that is the undisputed amount." Both sides agreed to spend 30 days finishing the final accounts after the handover.
Bitature stressed that transparency matters greatly. His company must follow stock market rules since investors can buy shares in it. He announced they planned a meeting with shareholders during May. All debts owed to service providers would be paid—"no one will be left behind." The total buyout should reach $190 million after final checks are finished.
Paul Mwesigwa leads UEDCL and feels ready for this responsibility. He pointed out that his company had already taken over five smaller power deals before UMEME. UEDCL focuses on five things: connecting customers, keeping power flowing, reducing energy waste, collecting payments, and promoting safety. The shareholders approved hiring 2,712 employees, with 99.6% coming from UMEME.
Energy Minister Ruth Ssentamu Nankabirwa described how they carefully planned this switch. The government asked for a $190 million loan to pay for everything. She emphasized that this was not a sudden cancellation but a scheduled end to the contract. "This kind of little bleeding is expected," she said about temporary problems. She asked Ugandans to show patience during the change.
Since 2005, UMEME has helped change Uganda's energy world. They boosted electricity access from just 12% to more than half the country. Millions of people connected to power for the first time because of them. Yet many Ugandans complained about high prices and service cuts throughout those years. The government wanted to take back control of this key system after hearing these concerns.
Selestino Babungi, who runs UMEME, talked about what they achieved. His company spent $850 million on improvements. They expanded from 5,000 transformer areas to 17,000. Their customer count jumped from 250,000 to 2.2 million. He praised their safety record and mentioned cutting energy losses from 38% down to 16%.
Babungi warned about coming challenges. Uganda needs more electricity fast, as demand grows 10% every year. The country makes about 1,200 MW, but peak use already hits 700 MW. He believes Uganda will face power shortages within three years unless it starts new projects right away. Plans exist to import electricity from Ethiopia, but these connections remain under construction.
Patrick Bitature, UMEME's Board Chairman, shared financial details about the transfer. The government paid them $118 million as part of buying the assets. He promised this cash "will not be touched because that is the undisputed amount." Both sides agreed to spend 30 days finishing the final accounts after the handover.
Bitature stressed that transparency matters greatly. His company must follow stock market rules since investors can buy shares in it. He announced they planned a meeting with shareholders during May. All debts owed to service providers would be paid—"no one will be left behind." The total buyout should reach $190 million after final checks are finished.
Paul Mwesigwa leads UEDCL and feels ready for this responsibility. He pointed out that his company had already taken over five smaller power deals before UMEME. UEDCL focuses on five things: connecting customers, keeping power flowing, reducing energy waste, collecting payments, and promoting safety. The shareholders approved hiring 2,712 employees, with 99.6% coming from UMEME.
Energy Minister Ruth Ssentamu Nankabirwa described how they carefully planned this switch. The government asked for a $190 million loan to pay for everything. She emphasized that this was not a sudden cancellation but a scheduled end to the contract. "This kind of little bleeding is expected," she said about temporary problems. She asked Ugandans to show patience during the change.
