Umeme battles 80 pending court cases as concession ends

Kampala, Uganda | THE INDEPENDENT | Umeme’s Head of Legal Services, Lawyer Allan Rwakakooko, has disclosed that the power distributor is currently entangled in about 80 pending court cases across various courts.The development comes just days after the expiry of Umeme’s 20-year electricity distribution concession, which commenced on March 1, 2005, and officially ended at midnight on March 31, 2025.

Speaking to the media on the sidelines of the Uganda Law Society’s weekly Radical New Bar press conference held at their Secretariat in Kampala, Rwakakooko said Umeme had long anticipated the end of the concession and ensured that all legal matters were being handled diligently.He noted that judicial officers were also aware of the approaching expiry and had shown understanding in processing the cases involving the company.

Despite the pending litigation, Rwakakooko emphasized that Umeme is committed to meeting its legal and operational obligations. He clarified that under the law, provisions must be made for any potential liabilities as part of the winding-up process—which, he said, Umeme has not yet begun.

He further revealed that there is a variance between what Umeme expected in terms of buyout figures and what the government, through the Auditor General, has verified.“So there is a discrepancy between what UMEME expected and what the government and the Auditor General said Umeme would get. That is also expected. At the end of the concession, the government and UMEME are supposed to sit in a room and do a reconciliation,” said Rwakakooko.

Rwakakooko also apologized to the public for the recent power outages that affected several parts of the country. He attributed the disruptions to extreme weather conditions, which caused utility poles to collapse and damaged the 33kV high-voltage lines. He added that incidents of wire theft in Entebbe and vandalism of power lines further compounded the issue.

He noted that during the transition period, Umeme faced limitations in its investment capital, particularly for replacing damaged transformers and cables. He admitted that the company had difficulty mobilizing personnel but hired contractors to resolve the issues.

Rwakakooko also stated that Umeme had known about the planned takeover by the Uganda Electricity Distribution Company Limited (UEDCL) two years earlier and that the handover process was initiated accordingly. He maintained that the transition was smooth and without conflict.

During the same press conference, the Director of Legal Services at the Electricity Regulatory Authority (ERA), Harold Obiga, noted that electricity access in Uganda currently stands at 57%, with the authority aiming to increase that figure to at least 80%.

Meanwhile, the Vice President of the Uganda Law Society, Anthony Asiimwe, encouraged the public to reach out to ULS for assistance in pursuing justice.“We are here to voice out your needs, and to speak up and ensure that justice is served. We do not only want to speak about it, but we shall also take action, depending on the petition or the kind of request,” said Asiimwe.

There has been growing public concern over the accuracy and fairness of Umeme’s buyout figures. The government, through a loan from Stanbic Bank, reportedly paid Umeme $118 million as part of the handover process.

However, while Umeme agreed to the transfer of operations, the company disputes the buyout amount and is seeking a figure higher than the one verified by the Auditor General. The government, on its part, has indicated that the figure paid was only an estimate since the concession was still in effect at the time of computation. 1

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