Umeme Limited, has officially entered its Retransfer Transition Period following the expiration of its 20-year concession on February 28, 2025. The company, which has been at the forefront of Uganda’s electricity distribution sector, is now awaiting a $234 million Buy Out Amount from the government before fully transferring operations.
In an official statement, Umeme confirmed that while its right to operate the electricity distribution system has ended, the final handover to Uganda Electricity Distribution Company Limited (UEDCL) or a designated entity will only take place after the government settles the pending payment.
Umeme submitted an estimated Buy Out Amount of $234 million, which is currently under review by the Auditor General.
The audit report will determine the final payable figure, which the government is expected to clear by March 31, 2025. Failure to meet this deadline will result in penalty interest, as stipulated in the concession agreements.
Due to the financial implications of the pending buyout, Umeme has delayed its financial results publication until the issue is resolved. Shareholders will receive further updates during the company’s Annual General Meeting (AGM) on May 22, 2025.
What Happens Next?
As Uganda prepares for a new phase in its power distribution framework, all eyes remain on the government’s next move in ensuring a smooth transition from Umeme to a new electricity service provider.
