Uganda’s power distribution landscape has entered a critical transition phase as Umeme Limited, the country’s main electricity distributor, faces 80 unresolved court cases following the expiration of its 20-year concession. The company’s Head of Legal Services, Lawyer Allan Rwakakooko, revealed this development during a media briefing at the Uganda Law Society’s Secretariat in Kampala, just days after the concession officially ended on March 31, 2025.

The concession, which began on March 1, 2005, marked a significant chapter in Uganda’s electricity sector, but its conclusion has brought to light several legal and financial complexities. Rwakakooko explained that Umeme had long anticipated the concession’s expiry and had been working diligently to address all pending legal matters. He noted that judicial officers were aware of the timeline and had shown understanding in handling cases involving the company. Despite the ongoing litigation, Rwakakooko emphasized Umeme’s commitment to fulfilling its legal and operational obligations during the transition period.

One of the key issues arising from the concession’s end is the discrepancy between Umeme’s expected buyout figures and the amount verified by the government through the Auditor General. Rwakakooko acknowledged the variance, stating that such differences were anticipated. “At the end of the concession, the government and Umeme are supposed to sit in a room and do a reconciliation,” he said. The government reportedly paid Umeme $118 million as part of the handover process, financed through a loan from Stanbic Bank. However, Umeme disputes this figure, seeking a higher amount than what was approved by the Auditor General. The government, meanwhile, maintains that the payment was an estimate, as the concession was still active during the computation.

The transition has also been marred by recent power outages across the country, which Rwakakooko attributed to extreme weather conditions and vandalism. Collapsed utility poles, damaged high-voltage lines, and incidents of wire theft in Entebbe exacerbated the disruptions. He admitted that Umeme faced challenges in mobilizing resources during the transition, including limited investment capital for replacing damaged transformers and cables. To mitigate these issues, the company hired contractors to address the infrastructural problems.

Rwakakooko assured the public that Umeme had been preparing for the handover to the Uganda Electricity Distribution Company Limited (UEDCL) for the past two years, ensuring a smooth transition without conflict. He reiterated that the company had not yet begun the winding-up process, as provisions for potential liabilities must first be addressed under the law.

The Electricity Regulatory Authority (ERA) also weighed in on the sector’s broader challenges during the press conference. Harold Obiga, ERA’s Director of Legal Services, noted that Uganda’s electricity access currently stands at 57%, with plans to increase this figure to at least 80%. The authority’s focus remains on expanding coverage and improving service delivery amid the ongoing transition.

Meanwhile, the Uganda Law Society (ULS) urged the public to seek its assistance in pursuing justice related to the power sector’s developments. ULS Vice President Anthony Asiimwe emphasized the society’s role in advocating for fairness and accountability. “We are here to voice out your needs and ensure that justice is served. We do not only want to speak about it, but we shall also take action, depending on the petition or the kind of request,” Asiimwe said.

The public has expressed growing concern over the transparency of Umeme’s buyout process, particularly regarding the disputed figures. Critics argue that the lack of clarity could undermine confidence in the sector’s stability as UEDCL takes over operations. The government, however, maintains that the handover was conducted in good faith, with the paid amount reflecting the best available estimates at the time.

As Umeme navigates its legal and financial challenges, the focus now shifts to how UEDCL will manage the distribution network and address the lingering issues inherited from its predecessor. The unresolved court cases, coupled with the disputed buyout, highlight the complexities of transitioning from a private concessionaire back to public management. Stakeholders are calling for greater transparency and collaboration to ensure a seamless shift and to uphold the sector’s integrity.

The end of Umeme’s concession marks a pivotal moment for Uganda’s electricity sector, with implications for service delivery, legal accountability, and public trust. While the company has pledged to resolve its pending cases and honor its obligations, the government and regulatory bodies face the daunting task of stabilizing the sector and expanding access to electricity nationwide. The coming months will be critical in determining whether the transition can be completed without further disruptions and whether Uganda’s power distribution system can emerge stronger from this period of change.