Umeme Limited has officially transferred electricity distribution operations to the Uganda Electricity Distribution Company Limited (UEDCL), marking a shift from private-sector management to a state-controlled model.
Effective midnight on March 31, 2025, UMEME will cease collecting electricity bills, with the responsibility shifting to the government-owned UEDCL.
The handover ceremony, held at UMEME’s offices in Lugogo, was attended by key stakeholders in the energy sector, including regulators and executives from both UMEME and UEDCL.
Speaking at the event, Energy Minister Ruth Nankabirwa reaffirmed the government’s commitment to improving service delivery, reducing electricity tariffs, and ensuring nationwide electrification.
“The transition to UEDCL is part of our broader strategy to enhance efficiency, accountability, and affordability in electricity distribution. We appreciate UMEME’s contributions over the years, and we are now ready to take the next step in developing Uganda’s energy sector,” Nankabirwa stated.
She further announced that UMEME’s assets had been officially handed over to UEDCL to facilitate a smooth transition.
Former UMEME customers are now advised to look for “UEDCL Light” on telecom payment menus, as the “Yaka” brand has been replaced.
Consumers have been urged to follow updated procedures to ensure continued access to electricity services without disruption.
UMEME had managed Uganda’s electricity distribution since 2005 under a concession agreement. While the company played a key role in increasing electricity access and reducing power losses, concerns over high tariffs and contractual terms prompted the government to pursue an alternative approach.
UEDCL Managing Director Paul Mwesigwa assured the public that the transition would be seamless, with no disruptions to electricity supply.
He emphasized the government’s commitment to expanding electricity coverage, particularly in rural areas, and improving network reliability.
“As we take over operations, our priority is to ensure a smooth transition that benefits all Ugandans. We are committed to strengthening infrastructure, addressing customer concerns, and making electricity more accessible and affordable,” Mwesigwa said.
Welcoming former UMEME employees to UEDCL, Mwesigwa revealed that 2,200 staff members had been absorbed into the government-owned entity.
“We would like to welcome Umeme staff to UEDCL. Among the more than 2,200 UMEME employees UEDCL has taken on, some moved to UMEME in 2005, and today, we welcome you back. We shall do everything possible to help you settle in,” he stated.
Eng. Ziria Tibalwa Waako, CEO of the Electricity Regulatory Authority (ERA), described the transition as a “significant milestone” in Uganda’s electricity distribution journey, reflecting on UMEME’s 20-year concession.
“This is a momentous occasion that marks the end of UMEME’s 20-year concession. During this period, we have seen the rehabilitation and upgrading of the electricity distribution network, improvements in operational efficiency, and a reduction in energy losses. This transition was planned over five years to ensure a smooth handover,” Waako said.
Patrick Bitature, Chairman of UMEME’s Board, noted that 80% of UMEME’s workforce had been absorbed by UEDCL and emphasized that the company was handing over a “well-trained and motivated” team.
“80% of our staff have been absorbed. So, we are handing over a well-trained and motivated staff. We still have work to do. Negotiations will continue, and I will have to explain to our shareholders because the buyout amount we received is not what they expected,” Bitature stated.
UMEME Managing Director Serestino Babungi highlighted the company’s contributions over the past two decades, including significant investments in infrastructure and improvements in service delivery.
“After 20 years of powering Uganda, UMEME officially hands over to UEDCL. Since 2005, UMEME has expanded electricity access from less than 5% to 25%, reduced energy losses from 38% to about 15%, and invested over $800 million in infrastructure to boost reliability,” Babungi said.
He added that UMEME’s collaboration with the government, the Electricity Regulatory Authority, and UEDCL had ensured a seamless transition.
“Customers will continue to access power without disruption, Yaka services remain unchanged, and the grid infrastructure is intact for sustained growth in the energy sector,” Babungi reassured.
