Umeme

About Umeme

Umeme Limited operates as Uganda's principal electricity distribution entity, a role it secured through a 20-year concession from the Ugandan government that commenced on March 1, 2005. The company was formed in 2004 when the government leased the assets of the state-owned Uganda Electricity Distribution Company Limited (UEDCL) to a consortium. This consortium initially comprised Globeleq, a subsidiary of the UK's Commonwealth Development Corporation (CDC), and Eskom of South Africa. By 2006, Globeleq became the sole owner after acquiring Eskom's stake.

The company's mandate encompasses the operation, maintenance, upgrade, and expansion of the electricity distribution network, alongside retailing electricity to its customer base. Umeme's business model is centered on distributing power purchased from a single buyer, the Uganda Electricity Transmission Company Limited (UETCL), and generating revenue through the sale of electricity to a wide range of clients, including domestic households, commercial enterprises, and industrial consumers. A significant part of its service delivery has been the rollout of the "Yaka" prepaid metering system, which served approximately 98% of its over 1.5 million customers by the end of 2019.

A major milestone in Umeme's history was its Initial Public Offering (IPO) on October 15, 2012, which listed 38% of its shares on the Uganda Securities Exchange (USE) and raised approximately UGX 171 billion to fund network expansion and pay off debt. This was followed by a cross-listing on the Nairobi Securities Exchange (NSE) on December 14, 2012. Over its concession period, Umeme made substantial investments, growing its customer base from 250,000 in 2005 to 2.3 million and reducing energy losses from 38% to 16%. The company also expanded the physical network, increasing transformer zones from 6,000 to 14,000 and rehabilitating numerous substations.

The 20-year concession concluded on March 31, 2025, with the government deciding not to renew the contract. Consequently, on April 1, 2025, Umeme handed over the management and assets of the distribution network back to the state-owned UEDCL. The transition involves a buyout from the government to compensate Umeme for unrecovered capital investments made during the concession.