Uganda’s power giant, Umeme, has accepted a $118 million buyout from the government. This is despite their initial expectation of $234 million. The firm plans to challenge the decision.
Umeme Limited, the nation’s primary electricity distributor, confirmed on Monday its acceptance of the government’s $118 million offer. This comes after the government compelled the handover of its operations to UEDCL.
“We’ve received the $118.3 million,” Umeme stated. However, they swiftly announced their intent to appeal. “We’ve informed the government of our plan to formally dispute the amount.”
Parliament, through Speaker Anita Among, will only approve the audited sum. Energy Minister Ruth Nankabirwa urged UEDCL to improve services. She had previously challenged Umeme to perform well until their concession ended.
The Auditor General’s report suggested a lower buyout, citing issues with Umeme’s initial $190 million estimate. Parliament approved this report, leading to the current situation. Umeme’s concession concluded on February 28, 2025.
The handover to UEDCL is expected soon. This saga highlights the complexities of national infrastructure transitions.
