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However, the government owes KRECS Shs700 million for funding new connections.
Kampala, Uganda | THE INDEPENDENT | State-owned Uganda Electricity Distribution Company Ltd (UEDCL) has officially taken control of Kyegegwa Rural Electricity Cooperative Society (KRECS) Limited, a key player in power distribution across several central districts, firming its grip on the country’s electricity sub-sector.
KRECS, which was granted a 10-year operating license, has been serving the districts of Kyegegwa, Mubende, Mityana, Luwero, Nakasongola, Kayunga, and Buikwe. This takeover occurs just one year after another significant transition where Uganda Electricity Generation Company reacquired the Nalubaale and Kira hydropower dams downstream of the River Nile in Jinja.
The transition was marked by a ceremonial asset transfer at Katente Hotel in Kyegegwa District. Representing the permanent secretary of the Ministry of Energy Mineral Development, Engineer Innocent Ola, highlighted the government’s commitment to reforming the electricity supply industry.
“This takeover is a testament to the second-generation reforms that are being undertaken by the government in the electricity supply industry,” he said.
Musa Rutangi Swaibu, the chairperson Board of Directors at KRECS, acknowledged the government’s support during his tenure.
“KRECS was informed about the policy changes two years ago, so as a board, we had ample time to prepare; it has not been a surprise,” he said during the event.
The ceremony also addressed the financial transitions, with Rutangi noting that the government owes KRECS Shs700 million for funding new connections.
The cooperative also transferred all assets, including transformers, operational tools, vehicles, motorbikes, and more to UEDCL and the energy ministry.
Eng. Protaze Tibyakinura, Chief Engineering and Technical Services Officer for UEDCL’s Central Service Territory, reassured the public about the seamless transition.
“We have extensive experience managing such takeovers without causing public anxiety. In the last ten years, we have successfully taken over and revitalized four concessions,” he stated.
UEDCL emphasized its commitment to its employees in the takeover process, with the board promising that job opportunities will be first offered to existing employees.
