Umeme Failed to Invest as Promised Before Exit – PS Batebe
The Ministry of Energy and Mineral Development has attributed the intermittent power supply in several parts of the country to Umeme’s failure to fulfill its planned investment obligations before exiting the electricity distribution sector.
According to the Ministry Permanent Secretary, Irene Batebe, the utility company did not upgrade key infrastructure, such as transformers, as had been committed under its concession agreement, leading to widespread overloads and disruptions in power supply.
“We have discovered that many transformers are overloaded because as Umeme prepared to exit, they didn’t invest as planned for the last one or two years,” Batebe said.
The Permanent Secretary who on Tuesday was speaking in Wakiso district, said that the Ministry has already registered complaints intermittent power supply. “We’ve already carried out troubleshooting and identified the specific areas in Wakiso facing unstable power supply. Fortunately, the Solicitor General has approved contracts aimed at increasing transformer capacity, and contractors are already on site.” Umeme formally exited Uganda’s electricity sector on n March 31, 2025 after government terminated its 20-year concession.
Under the terms of the concession, Umeme was obligated to continue investing in the electricity infrastructure up to the final day of the agreement to maintain a stable power supply.
Following the termination of the contract, government approved USD 118 million to pay to Umeme as buyout amount. The utility company reject the amount, and has since a USD 292m (Shs1.06 trillion) claim against government in an arbitration process in London.
Meanwhile, several areas in Wakiso have been earmarked for power system upgrades to enhance electricity reliability.
They include; Kakiri, Naluvule, Nalumunye, Nansana ku Masitoowa, Nakuwadde, Nkoowe, Namusera, Bulenga, Namugongo, Mutundwe, and Namungoona.
“In all those areas, we are planning for transformer insertion to stabilize power supply,” Batebe said.
By ChimpReports