Uganda’s electricity sector stands at a dangerous crossroads as the government stumbles through a poorly planned takeover from power distributor Umeme Limited. What should have been a carefully managed transition has turned into a last-minute scramble, exposing deep flaws in governance and planning that could leave Ugandans facing higher costs and worse services.

The roots of this crisis stretch back to 2005 when Uganda signed a controversial 20-year concession with Umeme, a private company majority-owned by UK investment firm Actis. From the beginning, the deal favored the company over Ugandans, locking the government into costly compensation terms if the contract ended early. Surprisingly, President Museveni himself has repeatedly criticized the agreement, calling it unfair and vowing to take back control.

This raises serious questions: If the President knew about these problems for years, why wasn’t there a proper transition plan? The government has known since 2005 that Umeme’s contract would end in March 2025. Yet here we are, just months before the deadline, with officials panicking to arrange a takeover.

The situation became more alarming when Parliament recently approved a $190 million (Shs700 billion) loan from Stanbic Bank Uganda to buy out Umeme. The rushed approval ignored warnings from parliamentary committees and the Auditor General, who hadn’t even finished reviewing the actual costs involved. Without proper checks, this decision risks burdening taxpayers with an unnecessarily large debt.

Even more troubling is whether the Uganda Electricity Distribution Company Limited (UEDCL), which will take over from Umeme, is ready for this massive responsibility. The Electricity Regulatory Authority admits UEDCL needs at least $50 million (Shs170 billion) to start operations properly – money the government doesn’t have. This raises fears of power blackouts, corruption, and higher electricity bills for consumers.

The Umeme mess reflects a broader pattern of government failures. Recently, confusion erupted over Ugandan troops sent to South Sudan after the Defense Minister claimed he didn’t know about the deployment that the army chief had announced. If top officials can’t coordinate on military matters, how can they manage something as complex as national electricity distribution?

Ugandans deserve answers. Why was there no proper bidding process for the $190 million loan? Why ignore expert advice about preparing UEDCL? And most importantly – will our electricity system collapse under government management like so many other services have?

As the March 2025 deadline approaches, one thing is clear: The people will pay the price for this incompetence, through higher taxes, worse services, or both. The Umeme takeover was supposed to bring electricity back under Ugandan control. Instead, it’s becoming another sad example of how poor planning and rushed decisions hurt ordinary citizens.

Uganda’s leaders must explain why they waited until the last minute to address a problem they’ve known about for 20 years. Until they show real accountability, citizens can only brace for more failures in essential services. The lights may stay on for now, but the future of Uganda’s electricity looks dangerously unstable.