UGANDA’S POWER STRUGGLE: UMEME’S CONTROVERSIAL EXIT, BILLIONS IN COMPENSATION, AND UNANSWERED QUESTIONS

The Ugandan government’s decision to abruptly terminate Umeme Limited’s 20-year electricity distribution concession by March 31, 2025, has left Ugandans with more questions than answers. With Parliament approving a staggering $190 million loan to compensate Umeme, a company that has long been criticized for high tariffs and poor service delivery, the nation demands to know: What exactly did Umeme do to deserve such a golden handshake, and who truly owns it?

The Price of Power: Why is Uganda Rushing to Pay Off Umeme?

According to official reports, Umeme’s exit package is based on ‘unrecovered investments’ as per their contract with the government. Energy Minister Ruth Nankabirwa stated that the initial estimated cost of compensation was $215 million, but UEDCL (Uganda Electricity Distribution Company Limited) is trying to reduce this amount. But why should taxpayers bear the burden of a private company’s investments when Ugandans still suffer from unreliable electricity services?

President Yoweri Museveni himself previously criticized Umeme for its high return on investment—a whopping 20%—which he claimed contributed to the inflated electricity tariffs. “We cannot continue with a system that exploits Ugandans,” Museveni reportedly said. But if Umeme was a problem, why not hold them accountable rather than reward them with a nearly quarter-billion-dollar payout?

Who Owns Umeme? Is It Really Linked to Museveni’s Inner Circle?

One of the most disturbing allegations surrounding Umeme’s exit is the rumored involvement of the Museveni family in the company’s ownership. While Umeme is publicly listed on the Uganda Securities Exchange and Nairobi Securities Exchange, with 35% of shares held by Ugandans, speculation remains rife that powerful political figures have been benefiting from Uganda’s electricity sector all along.

The rush to approve this compensation raises concerns about whether Parliament is merely rubber-stamping an inside deal. The Leader of the Opposition (LoP) in Parliament has strongly condemned the speed at which the budget was passed, arguing that critical questions remain unanswered. Why was this compensation agreement rushed through Parliament before full scrutiny? Why weren’t MPs given a chance to review the finer details of the budget allocation?

The UEDCL Takeover: Better or Worse for Ugandans?

With Umeme exiting the scene, the government is bringing in UEDCL to take over electricity distribution. But is this really the better alternative?

Ugandans are already experiencing technical failures, with thousands reporting that their electricity tokens do not work even after making fresh payments. If this is the service level under Umeme, what guarantee is there that UEDCL—already struggling with funding and technical capacity—can do better?

The government is injecting $64 million into UEDCL’s operations, but will that be enough to sustain a seamless transition? Many Ugandans fear that power outages, inefficiencies, and mismanagement will only get worse.

The Big Questions That Ugandans Deserve Answers To:

1. Why is Uganda paying off Umeme so quickly and with such a massive amount of money?

2. Who truly owns Umeme, and why is there secrecy surrounding the real beneficiaries?

3. What guarantees do Ugandans have that UEDCL will not become another corrupt government entity mismanaging power distribution?

4. Why did Parliament rush the approval of this budget without thorough scrutiny and debate?

5. How will the government address the ongoing electricity token issues that Ugandans are complaining about?

The Nation is Watching

This is not just a power transition; it is a test of government transparency and accountability. Parliament, the Ministry of Energy, the Electricity Regulatory Authority (ERA), and the Ugandan people must demand full disclosure on every single cent being paid to Umeme.

The Ugandan taxpayer is being forced to fund this deal, yet many remain in darkness—literally and figuratively. It is time to shine a light on the truth.

We are tagging the following officials and institutions to answer these questions:

President Yoweri Kaguta Museveni (@KagutaMuseveni)

Minister of Energy Ruth Nankabirwa (@nankabirwa)

Uganda Electricity Distribution Company Limited (@UEDCLofficial)

Electricity Regulatory Authority (@ERA_Uganda)

Parliament of Uganda (@Parliament_Ug)

Leader of the Opposition in Parliament (@LoPUganda)

Ugandans, this is YOUR money, YOUR electricity, and YOUR future at stake. Will you stay silent, or will you demand the truth?