The Independent Uganda: You get the Truth we Pay the Price
“The Buy Out Amount must be paid within 30 days following the end of the concession term, specifically by 31st March 2025. If the payment is not received by this deadline, penal interest will be applied as stipulated in the Concession Agreements.”
Kampala, Uganda | THE INDEPENDENT | Exiting electricity distributors Umeme Limited have issued a statement today saying they expect an estimated buy out amount of $234 million to be paid by Uganda government by March 31, 2025. They reiterated that the 20-year Umeme Concession for electricity distribution ended after the 28th of February 2025 and is currently in the Retransfer Transition Period.
At the same time, Speaker of Parliament Anita Annet Among has received a report on the Uganda Electricity Distribution Company Limited (UEDCL) and Umeme agreement from the Auditor General, which recommends the payment of only $118 million.
Speaker Among received the report and said Parliament will only okay the payment of that particular sum, and nothing more. She also asked UEDCL “to offer better services after the exit of Umeme.”
Speaker @AnitahAmong receives @OAG_Uganda report on @UmemeLtd – @UEDCLTD agreement, which recommends the payment of only USD 118 million. pic.twitter.com/0c8SyZ2Rsr
— Parliament of Uganda (@Parliament_Ug) March 27, 2025
Soon after, Parliament approved the Auditor General’s report on Umeme today. Deputy Speaker Thomas Tayebwa instructed the Clerk to Parliament to extract and forward the resolution to government for immediate action.
Parliament was also informed that the $190,988,556 (Shs700.218Bn) loan from Stanbic Bank meant for Umeme buyout was in excess of over Shs267.614Bn because the only amount due to Umeme is $118m (Sh432.677Bn).
In their statement, Umeme acknowledge that the Auditor General Edward Akol was looking into the deal.
“Umeme submitted an Estimated Buy Out Amount of USD 234 million, which is currently undergoing audit by the Government of Uganda through the Office of the Auditor General. The audit process is still ongoing, and we await their report before final reconciliation. Upon receiving the audit report from the Government of Uganda, Umeme will review the findings and determine the necessary course of action, if any,” the statement said.
Umeme Limited (“the Company”) wishes to update its shareholders and the general public regarding the status of its electricity distribution concession and related matters.
Details: https://t.co/LsUJNadLCM [PUBLIC NOTICE] pic.twitter.com/aNyDGx7WsN
— Umeme Limited (@UmemeLtd) March 27, 2025
Statement on the current power supply constraints in the country and interventions. Nevertheless, I implore @UmemeLtd as the main distributor to minimize outages as they remain under concession until 1st April 2025.
Finish strong! ⚡ pic.twitter.com/ODsF4AvvVh
— Ruth Nankabirwa Ssentamu (@NankabirwaRS) March 27, 2025
However Umeme warned that, “Umeme’s rights to the Distribution System (including the right to operate the Distribution System) under the Concession Agreements will only terminate at the end of the Retransfer Transition Period which shall only occur once the Buy Out Amount is paid by the Government of Uganda and received by Umeme.”
Umeme added that, “The Buy Out Amount must be paid within 30 days following the end of the concession term, specifically by 31st March 2025. If the payment is not received by this deadline, penal interest will be applied as stipulated in the Concession Agreements.”
Earlier, Minister of energy Ruth Nankabirwa also issued a statement on the current power supply constraints in the country and interventions. She challenged Umeme to ‘finish strong’.
“Nevertheless, I implore Umeme Ltd as the main distributor to minimize outages as they remain under concession until 1st April 2025” she said.
We as Government are in receipt of this from @UmemeLtd. As @GovUganda we shall ONLY execute what the Auditor General has audited with which is $118M as the buyout amount for UMEME and we expect by 1st April @UmemeLtd to have handed over to @UEDCLTD! @UmemeLtd is free to Petition! pic.twitter.com/tSxZ83m8Ou
— Ruth Nankabirwa Ssentamu (@NankabirwaRS) March 27, 2025
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