Game Over! Umeme To Exit Uganda By 2025

Umeme, Uganda’s largest electric power distributor, has confirmed it will be pulling out of the Ugandan market when its 20-year concession from the Government of Uganda expires come 30th March 2025.

In a statement released today, Umeme says it has received official communication from the Government that its 20-year concession will not be renewed when it expires three years from now.

“The Company has received official communication from the Government of the Republic of Uganda, notifying it that the current concession will continue to run until its natural end in March, 2025 as stipulated in the Concession Agreements after which, there will be no renewal,” the statement read in part.

The statement however stated that the company – Umeme – remains committed to performing its obligations as per the existing concession agreements and will continue to operate and maintain the electricity distribution system in line with prudent utility practice to ensure continued service delivery through to the end of the concession.

The communications manager at the Energy Ministry, Solomon Muyita, told the press recently that Government is planning to name a multi-sectoral committee that shall oversee the auditing process of Umeme’s investments and assets.

Part of the reasons for Government to end the Umeme concession have been high electricity tariffs.

“Government decided to bundle electricity agencies which is in the context of forming one company that will provide cheaper electricity,” Muyita said.

For some time now, there has been speculation about Umeme’s continued stay in Uganda. Several media reports have previously indicated the President, Yoweri Kaguta Museveni, was not happy with how the power distribution company was doing business in Uganda.