Uganda’s largest electric distribution company, Umeme Limited, has as of April 1, 2025, transitioned its operations to the Uganda Electricity Distribution Company Limited (UEDCL). This acquisition marks the closure of the concession period of 2005.

Eng. Irene Bateebe, the Permanent Secretary in the Ministry of Energy and Mineral Development, said this transfer signifies the dawn of a new era for the power distribution network in the country. Other important parties include the Ministry of Energy and Mineral Development, Electricity Regulatory Authority (ERA), and UEDCL management which were also part of the ceremony.

Back in April, UEDCL Managing Director, Paul Mwesigwa, assured Ugandans of their services being rendered without interruptions claiming that the company will be improving their infrastructure by performing on-the-spot maintenance, installing new substations and transformers, and changing out poles.

While handing out the payment, the government compensated Umeme with a buy-out payment of USD 118 million, alongside allocating USD 9 million for further distribution of ongoing projects and USD 50 million as capital investment funds for UEDCL. The turning point of this payment agreement came when Umeme claimed that the transfer of funds would only proceed once the government fulfilled their end of the bargain, which led to them needing to pay first.

The change is expected to bring significant advancements to Uganda’s power grid like better coverage to remote regions and improved access to integrated distribution centers.