Government marks end of road for Umeme

In a notice sent out to its shareholders and the public, Umeme confirmed that it had received the communication from the Ministry of Energy.

Nevertheless, the company pledged commitment to continue performing its obligations as it winds down its operations for the next two years.

“The company has formally received written communication from the Government of the republic of Uganda, notifying it that the current concession will continue to run until its natural end in March, 2025 as stipulated in the Concession Agreements after which, there will be no renewal,” Umeme said in a statement.

“The Company remains committed to performing its obligations as per the existing Concession Agreements and will continue to operate and maintain the electricity distribution system in line with prudent utility practice to ensure continued service delivery through the end of the concession.”

Umeme, which replaced the ineffective Uganda Electricity Board in 2005, has in recent years fallen out of favor with the government as President Yoweri Museveni constantly blamed it for the high-power cost, which has hampered development.

Museveni also publicly accused officials in the Energy and Finance Ministries of onboarding Umeme without his knowledge.