The Minister of Energy, Ruth Nankabirwa, has revealed that job losses among Umeme Limited employees are inevitable as the government prepares to take over electricity distribution.
Appearing before Parliament’s Committee on Environment and Natural Resources, Nankabirwa explained that some of the roles currently performed by Umeme staff are already being handled by employees of the Uganda Electricity Distribution Company Limited (UEDCL).
To avoid duplication, not all Umeme workers will be absorbed into the new structure, she said.
“Where we find out your job is already taken and we already have it with UEDCL, your contract has ended with Umeme. We are looking for a slot with Umeme, but we have this person who has been working with UEDCL do we throw that person out and bring in the Umeme person? If we interview both of them, the Umeme one and UEDCL, one of them is bound to lose. So, this is inevitable,” Nankabirwa stated.
Her remarks came as Parliament considered the government’s request to borrow $50 million as the initial investment for UEDCL, in preparation for the end of Umeme’s concession on March 31, 2025.
Nankabirwa further noted that applications from Umeme workers had been rejected as part of a broader restructuring strategy aimed at improving efficiency and cutting costs. “On my side, the objective was to remove duplication and enhance efficiency,” she added.
However, the Chief Executive Officer of the Electricity Regulatory Authority (ERA), Ziria Tibalwa, expressed concerns over the government’s readiness to take over from Umeme in April 2025.
She cited delays in securing the $50 million required by UEDCL as an initial investment.
Tibalwa also attributed the ongoing power blackouts to clauses in the Umeme concession agreement that prevent government intervention until the contract officially ends.
Last week, Minister Nankabirwa urged Ugandans to be patient with the current power outages, assuring them that the situation would improve once the government takes over electricity distribution on April 1, 2025.
