The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | Exiting electricity distributors Umeme Limited have issued a statement today stating they will accept a buy out amount of $118million despite expecting to be paid $234. They have notified government they will appeal against the figure.
The statement also states that they have been compelled by government to hand over today. “Umeme has been compelled but the government of Uganda to handover the distribution system to the UEDCL. The handover will take place today.”
“The company has, without prejudice, invoiced for and received the government’s admitted sum of $118,385,603,” Umeme said in a statement today.
According to the UMEME-GOV agreement, the buy out amount was to be paid within 30 days following the end of the concession term, specifically by 31st March 2025. If the payment was not received by this deadline, a penal interest would have been applied as stipulated in the Concession Agreements.
“Umeme disputed, among several things, the audited figure in the OAG’s report and has informed the government of Uganda, that the company will issue a formal Notice of Dispute in accordance with the terms of the Section 9.1 of the Support Agreement.”
Last week, Umeme 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.
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
Also, last week, 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.”
Soon after, Parliament approved the Auditor General’s report on Umeme. 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).
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 had 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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