Uganda’s electricity sector has turned a new page with UMEME’s exit on March 31, 2025, after 20 years of powering the nation.
But for those who suffered losses under the private distributor’s watch, the story ends on a sour note.
As the state-owned Uganda Electricity Distribution Company Limited (UEDCL) takes over, creditors—ordinary Ugandans and businesses hit by UMEME’s outages, high tariffs, and billing woes—face a stark reality as there’s no clear path to compensation.

UMEME’s tenure wasn’t all dark—it slashed distribution losses from 40% to 16% and bumped electrification from 10% to 25%. Yet, the cost was steep for many.
Shopkeepers lost sales to blackouts, rural families lagged without power, and customers battled disputed bills.

Now, with UMEME gone and a $118 million buyout paid (a figure it contested, seeking $235 million), those expecting redress are left hanging as government is now prioritizes Settling UMEME’s claims, not the public’s.
No fund or policy exists to repay those burned by UMEME’s past, and the secretive concession deal likely lets the company off the hook.

As of April 5, 2025, UMEME faces 80 pending court cases, as revealed by its Head of Legal Services, Allan Rwakakooko, during a Uganda Law Society press conference.
These cases, spanning various courts, involve disputes over billing, service delivery, and contractual obligations—issues that plagued customers for years.

Rwakakooko noted judicial awareness of the concession’s end, but the transition to UEDCL complicates who bears liability.
Historically, UMEME has faced legal heat: in 2014, a manager was beaten during power protests in Mubende, sparking a clash that led to 15 arrests.

That same year, Kampala shop owners struck over six-day outages, met with tear gas. In 2018, Gulu residents protested frequent blackouts, joined by MPs, only to face security crackdowns. These incidents fueled lawsuits, but resolution remains elusive, and Uganda’s judicial system isn’t primed for swift justice now that UMEME’s role has ended.

Could courts still help creditors? Maybe, but don’t count on it—legal battles against UMEME face a sluggish system and shifting responsibility post-exit. On X, anger simmers over UMEME’s profits and the buyout’s burden on taxpayers, yet no organized push for justice has emerged.

For creditors—a term here for those owed relief, not just money—the outlook is bleak. Future savings from UEDCL’s tariff cuts might soften the blow, but losses from yesteryear? They’re likely gone for good. “We’re forgotten in this handover,” one user tweeted.

As UEDCL powers up, the question lingers: will it light a path for those left in UMEME’s shadow? Without a compensation mechanism, hope is all they’ve got.

Check back for updates from UEDCL or the Ministry of Energy as this unfolds.

Written by

Francis Oyet

Oyet Francis Opwonya, known commonly as Francis L’Oyet is a Ugandan South Sudanese investigative journalist and software engineer. Oyet is the founder and CEO of Oyet Broadcasting Services (OBS Network), an innovation hub and headquarters of The Northern Press in Uganda and The Malakal Press, located in Malakal City, Upper Nile State in the Greater Upper Nile region of South Sudan