On April 1, 2025, the government has said that it is prepared for the Uganda Energy Distribution Company Limited (UEDCL) to replace Umeme Ltd. as the distributor of energy.
Transition preparations are advanced, according to the Ministry of Energy and Mineral Development (MEMD). To support UEDCL’s capital projects, the Ministry of Finance, Planning, and Economic Development is completing an internal financing agreement worth $50 million.
“By the end of next week, these funds will be available to ensure that UEDCL is financially equipped to improve the quality of service,” said the ministry.
The approval of Umeme’s buyout sum, which includes unrecouped capital investments made during its concession, is also being examined by Parliament. To guarantee a seamless transition, the government reaffirmed its commitment to carrying out all contractual duties.
The ministry stressed that UEDCL’s restructuring attempts to improve efficiency, remove duty duplication, and guarantee cost-effectiveness in order to address workforce issues. It guaranteed that the hiring procedure was transparent, equitable, and merit-based, giving preference to competent candidates.
The government also instructed Umeme to meet its contractual responsibilities until March 2025, acknowledging the existing issues with power reliability. After taking over in April, UEDCL is getting ready to start corrective action right now.
