Umeme Navigates Concession End With 80 Pending Suits

Uganda's electricity company, Umeme, has been facing big challenges as its 20-year contract comes to a close. The company's legal head, Allan Rwakakooko, shared important information about its current situation. He explained that they are handling about 80 different court cases across Uganda's courts.

Umeme's electricity distribution contract started in 2005 and officially ended on March 31, 2025. During a press conference, Rwakakooko discussed how the company prepared for the contract's end. He said they worked closely with court officials to manage their legal problems carefully.

The company faces some serious disputes with the government about how much money they should receive when leaving their contract. Rwakakooko mentioned there are differences between what Umeme expects and what government officials believe they should be paid. He hopes both sides will meet and work out the details.

Recent power problems have frustrated many people. Rwakakooko apologized for the widespread electricity outages across the country. He explained that extreme weather damaged utility poles and power lines, and theft and vandalism of power infrastructure made the situation worse.

During the transition period, Umeme struggled to get money for replacing broken equipment. They also had trouble finding enough workers and had to hire outside contractors to help solve their problems. The company had known about the handover to a new electricity distribution company for two years and tried to plan carefully.

The Electricity Regulatory Authority reports that electricity access in Uganda currently reaches 57 percent of the population. They hope to increase this to 80 percent in coming years. The government used a bank loan to pay Umeme 118 million dollars as part of ending the contract.

Uganda Law Society representatives encouraged people to seek legal help and speak up about their concerns. They want to ensure justice happens and are ready to take action when people need support. The society believes in helping citizens understand their rights.

Many people worry about how transparent the money calculations for Umeme's contract ending are. The government says their payment was based on estimates made before the official contract conclusion. Umeme continues to argue that they should receive more money than what was initially offered.
 

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