The Ugandan government has dramatically reduced its loan request to acquire electricity distributor UMEME from over $190 million to $118 million following a special audit verification. The revised figure, presented to Parliament on March 27, 2025, sparked heated debate among lawmakers about parliamentary oversight and the urgency of concluding the deal before UMEME’s contractual deadline.

The financial adjustment emerged from a Special Audit Report on terminating UMEME’s lease agreement with Uganda Electricity Distribution Company Limited (UEDCL). Minister of State for Finance Henry Musasizi presented the findings just one week after Parliament had initially approved the higher $190 million loan from Stanbic Bank – an approval that had been conditional on the Auditor General’s verification of UMEME’s actual investment value.

Deputy Speaker Thomas Tayebwa revealed the audit had uncovered the lower valuation during Thursday’s plenary session. “The Auditor General submitted a special audit report this morning confirming the buyout figure as $118 million,” Tayebwa announced, urging immediate consideration of the revised amount. The disclosure meant taxpayers would save $72 million in the controversial acquisition deal.

The sudden revision triggered procedural fireworks in the House. Kira Municipality MP Ibrahim Ssemujju led objections, protesting what he called an unconstitutional bypass of parliamentary scrutiny. “We have accountability committees for examining such reports. Are we suspending normal rules to push this through?” Ssemujju demanded. His concerns found support from Opposition Leader Joel Ssenyonyi, who warned against transferring Parliament’s appropriation powers to the Executive branch.

Deputy Speaker Tayebwa defended the accelerated process, explaining that special audit reports operate under different rules than annual reports. “This is time-bound – we must complete the UMEME buyout by March 31 to avoid penalty clauses,” he stressed, referencing contractual obligations that would allow UMEME to impose additional charges if the deal missed its deadline.

Tororo North County’s Geoffrey Ekanya bolstered the government’s position with regional comparisons. “Our neighbors in Tanzania, Kenya and South Africa handle such time-sensitive audits without waiting for full parliamentary approval,” the FDC legislator noted, while acknowledging the report might contain “elements of criminality” requiring future investigation.

The UMEME acquisition marks a pivotal moment in Uganda’s energy sector reforms. The South African-owned distributor has operated Uganda’s power network since 2005 under a controversial 20-year concession agreement often criticized for high electricity tariffs and poor rural connectivity. Government takeover plans gained urgency as the concession’s 2025 expiration approached.

Energy experts suggest the $118 million price tag reflects deductions for UMEME’s unmet performance obligations. The special audit reportedly identified underinvestment in grid expansion and equipment maintenance that reduced the company’s fair market valuation. However, full details of the Auditor General’s findings remain undisclosed to the public.

The revised loan terms now head to implementation phase, with Finance Ministry officials working round-the-clock to meet the March 31 deadline. Successful completion will transfer Uganda’s entire power distribution system to state control for the first time in two decades – a move government says will lower consumer prices through eliminated profit margins.

Critics however warn the rushed process may have overlooked critical details. “Saving $72 million is good news, but Parliament must still examine how these numbers were derived,” argued energy analyst Mary Mutesi. “Ugandans deserve transparency about what we’re buying and at what true cost.”

As Uganda’s power consumers await the takeover’s effects, the UMEME buyout saga underscores growing tensions between legislative oversight and executive urgency in major infrastructure deals. While the government celebrates securing a better price, parliamentary critics vow to keep investigating the valuation process – setting the stage for continued energy sector debates long after the March 31 deadline passes.

The deal’s success now hinges on smooth transition management. With UMEME’s technical staff and systems integral to keeping lights on across Uganda, analysts caution that botched handovers could trigger service disruptions. The coming months will test whether state control can deliver promised improvements to Uganda’s troubled power sector – and whether the controversial acquisition process withstands future accountability checks.

For ordinary Ugandans, the ultimate measure will come in their monthly electricity bills. As the government takes full control of the grid, citizens expect tangible benefits from this expensive repatriation of a critical national asset. The UMEME buyout may be concluding, but its real impact on Uganda’s energy future has only just begun.