By Our Reporter
Umeme Limited, a key player in Uganda’s electricity distribution sector, has provided an important update regarding its concession for electricity distribution.
The 20-year Umeme concession, which concluded after February 28, 2025, is now in the retransfer transition period.
The company clarified that its rights to operate the distribution system under the concession agreements will remain in effect until the end of this transition period.
This will only happen once the Government of Uganda pays the buy-out amount and Umeme receives it.
According to Umeme, an estimated buy-out amount of $234 million has been submitted.
However, the figure is still undergoing a detailed audit by the Government of Uganda through the office of the auditor general.
The company is awaiting the audit report before proceeding with any further actions. “We are committed to completing this process and will take necessary steps once the audit is concluded,” Umeme said in a statement.
The deadline for the payment of the buy-out amount is set for March 31, 2025. Should the payment not be received by this deadline, Umeme will apply penal interest, as agreed in the concession agreements.
The delay in the finalization of the financial results is also linked to the resolution of the buy-out amount, with the company stating that once the payment issue is settled, the results will be published.
Furthermore, the retransferring of the distribution system to UEDCL or its nominee will only occur once the buy-out amount is received by Umeme, in line with the concession agreements.
Umeme will hold its Annual General Meeting (AGM) on May 22, 2025, where any decisions requiring shareholder approval will be addressed.
The company also reaffirmed its commitment to fulfilling all its listing and disclosure obligations under the Uganda Securities Exchange rules.
