By Uganda Electricity Distribution Company Limited (UEDCL) has officially taken over the country’s power distribution system following the conclusion of UMEME’s 20-year concession. The handover, which took place on Monday, marks a significant shift in Uganda’s electricity sector as the government assumes full control of distribution operations.
Speaking during the official handover ceremony, UEDCL Managing Director Paul Mwesigwa assured the public that the company is well-prepared to manage the country’s power distribution. He cited UEDCL’s successful takeovers of five previous concessions as evidence of its capacity to handle the transition from UMEME.
“Over the past two decades, UEDCL has taken over five concessions, including Ferdisult Engineering Limited (2017), Bundibugyo Energy Cooperative Society (BECS, 2021), Pader Abim Community Multi-Purpose Energy Society (PACMECS, 2023), Kyegegwa Rural Energy Cooperative Society Limited (KRECS, 2024), and Kilembe Investments Limited (2024),” Mwesigwa said.
He noted that business in all previously taken-over service territories has grown and service delivery has improved. “For example, when we took over Ferdisult in 2017, the electricity energy loss target was 28%, and today, we stand at 18.1%.”
Umeme’s Legacy and Government’s Decision Not to Renew Its License
UMEME, which began its operations in Uganda in 2005, has been credited with increasing the national electricity distribution network, reducing power losses, and expanding the customer base. During its tenure, Umeme grew the electricity network from 16,000 km to 42,466 km and increased the customer base from 250,000 in 2005 to 2.37 million.
However, in January 2025, the Ministry of Energy granted UEDCL electricity distribution and sale licenses to replace Umeme, effective April 1, 2025. This decision was in line with the government’s policy to end private-sector involvement in power distribution.
As part of the takeover, UEDCL has already commenced critical procurements necessary to ensure a seamless transition. Mwesigwa emphasized that the company has worked tirelessly to recruit and integrate staff for the new structure.
“We are grateful that shareholders approved a staff structure of 2,712 in December. On January 6, 2025, we embarked on recruitments, and as we speak today, at least 99.6% of employees have been appointed,” he said, adding that the remaining positions would be filled by the close of business today.
Mwesigwa reassured Ugandans that electricity distribution services would not be interrupted during or after the transition. “All systems, both UMEME’s and UEDCL’s, shall be maintained and deployed until they are fully merged. Buying electricity units and accessing other services will continue uninterrupted through existing channels, including MTN, Airtel, banks, and other collection platforms.”
Additionally, he confirmed that all electricity units purchased before Umeme’s exit would remain valid, and all offices previously run by UMEME would continue operations under UEDCL.
“All vehicles, motorcycles, trucks, vans, SUVs, and other mobile equipment will revert to UEDCL. The respective logbooks are at UEDCL Tower, and we shall ensure reconciliation before the final transition,” Mwesigwa added.
Despite skepticism about the government’s ability to efficiently manage power distribution, Mwesigwa maintained that UEDCL has the expertise and experience required to handle the task. He reaffirmed the company’s commitment to reducing power losses, improving service quality, and ensuring a stable power supply across the country.
With this transition, Uganda enters a new phase in its electricity distribution sector, marking the end of private concessions and the beginning of full government oversight in power distribution.
