By Thuita Gatero,
Uganda’s energy landscape is undergoing a seismic shift as the 20-year concession of Umeme Limited, the nation’s leading electricity distributor, concluded on March 31, 2025. The state-owned Uganda Electricity Distribution Company Limited (UEDCL) has officially taken over operations as of April 1, marking a return to public management of power distribution.
This transition, paired with a major funding deal for the East Africa Crude Oil Pipeline (EACOP), is setting the stage for a redefined energy future in Uganda. Carol Nampurira, Corporate Sales Manager for Energy and Infrastructure at Stanbic Bank Uganda, joined CNBC Africa to discuss the implications for markets and consumers.
Umeme Uganda Hands Over the Reins
For two decades, Umeme Uganda has been synonymous with electricity distribution, managing a vast network that grew from 600,000 to over 1.6 million customers since 2005. Listed on the Uganda Securities Exchange (USE) and Nairobi Securities Exchange (NSE), Umeme’s share price has been a barometer of investor confidence in the sector.
As of its final trading day under the concession on March 28, 2025, Umeme’s share price stood at UGX 414, reflecting a slight dip of 0.2% from UGX 415, according to USE data. Over its history, Umeme’s share price fluctuated significantly—peaking at UGX 510 in 2017—driven by infrastructure investments and tariff debates. The company’s exit leaves shareholders and analysts watching how its legacy will influence future energy investments.
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UEDCL Takes Charge: A New Dawn for Power Distribution
UEDCL, established in 2001 under the Electricity Act, has long operated in the shadows of Umeme, managing rural networks and monitoring the concession. With Umeme’s departure, UEDCL assumes full control of the national grid below 33kV, a move Energy Minister Ruth Nankabirwa calls “a return to affordable, state-led energy.” Unlike Umeme, UEDCL is not publicly traded, so there’s no UEDCL share price to track. Instead, its performance will be judged by operational efficiency and consumer satisfaction, areas where it aims to outshine its predecessor.
UEDCL’s customer care number rollout reflects its commitment to accessibility. “We’re prepared to handle the increased workload,” said Managing Director Paul Mwesigwa, highlighting a staff structure of 2,712, with 99.6% already appointed—many transitioning from Umeme. This seamless workforce shift aims to maintain service quality, though some question whether UEDCL can match Umeme’s loss reduction (from 38% to 18% since 2005) without private-sector agility.
Financial and Market Implications
The government secured a $190 million loan from Stanbic Bank Uganda to buy out Umeme’s unrecovered investments, with an initial $118 million already disbursed. This payout, alongside $50 million to kickstart UEDCL’s operations, underscores the financial stakes. Nampurira noted, “The end of Umeme’s concession introduces uncertainty, but it’s also a chance for UEDCL to redefine the market.” Investors accustomed to tracking Umeme’s share price history now shift focus to UEDCL’s ability to stabilize tariffs and expand access—currently at 28% grid connectivity.
Meanwhile, the EACOP funding—$1 billion from a syndicate including Stanbic Bank Uganda and Afreximbank—propels Uganda’s oil ambitions. The 1,443-kilometer pipeline, targeting first oil by 2026, could add $8.6 billion to GDP over 25 years, per government projections. “EACOP is a game-changer,” Nampurira told CNBC Africa, “driving jobs and positioning Uganda as an energy hub.”
Challenges and Opportunities Ahead
UEDCL faces immediate hurdles: modernizing aging infrastructure, curbing power theft, and meeting a 10% annual demand surge (peak demand hit 700 MW against 1,200 MW capacity). Umeme’s customer care number once fielded outage complaints; now, UEDCL’s customer care number must prove equally responsive. Nampurira cautioned, “Execution is critical. Any misstep could dent investor trust.”
Yet, opportunities abound. UEDCL’s state backing could lower borrowing costs compared to Umeme’s 20% return-on-investment model, potentially reducing tariffs. With generation capacity at 2,052 MW, Uganda has surplus power to leverage—if distribution keeps pace. As Nampurira put it, “Reliable energy is the backbone of growth. UEDCL’s success could unlock industrial and SME potential.”
A New Energy Chapter
As Umeme Uganda fades into history, its share price history and customer care legacy linger as benchmarks. UEDCL, unburdened by a share price but tasked with a national mandate, steps into the spotlight. Contact UEDCL at 0800-285-285 for support—and watch as Uganda’s energy future unfolds.
