The question of how much Uganda truly owes electricity distributor Umeme has been a source of debate, confusion, and political contention. While Umeme initially claimed USD 234 million in unrecovered investments, an audit by the Auditor General, Edward Akol, concluded that the government only needed to pay USD 118 million.<\/p>\n\n\n\n
Yet, despite this official figure, Parliament previously approved a USD 190 million loan from Stanbic Bank to cover the buyout\u2014an amount far exceeding the Auditor General\u2019s findings. So, how did the figures vary so drastically, and how much should Uganda pay?<\/p>\n\n\n\n
As Umeme\u2019s 20-year concession nears its March 31, 2025, expiration, the company has demanded a buyout for its unrecovered investments in Uganda\u2019s power sector. Umeme submitted a claim of USD 234 million, which was then subjected to an official audit by the Auditor General\u2019s office.<\/p>\n\n\n\n
After reviewing the company\u2019s financial records and investment claims, the Auditor General\u2019s final report determined that only USD 118 million was justified. This figure was submitted to Parliament on March 27, 2025, for adoption.<\/p>\n\n\n\n
On March 20, 2025, Parliament approved a government proposal to borrow USD 190 million from Stanbic Bank to facilitate Umeme\u2019s buyout. However, the Auditor General had advised against the loan, citing discrepancies in the figures presented by various government agencies. The approved loan exceeded the recommended buyout sum by over Shs 267.614 billion (approximately USD 72 million).<\/p>\n\n\n\n
Speaker of Parliament Anita Among emphasized that the government should strictly follow the Auditor General\u2019s recommendation:<\/p>\n\n\n\n
\u201cWe shall only pay based on the Auditor General\u2019s report, not the estimate that we were given.\u201d<\/p>\n\n\n\n
This means that the actual amount owed to Umeme is USD 118 million, not the USD 234 million claimed by the company or the USD 190 million initially proposed by the government.<\/p>\n\n\n\n
The discrepancy between the audited amount and the government\u2019s proposed USD 190 million loan sparked backlash from MPs and opposition leaders. Many questioned why the government sought more money than was necessary.<\/p>\n\n\n\n
Kira Municipality MP, Ibrahim Ssemujju, strongly criticized the process:<\/p>\n\n\n\n
\u201cWe have never passed a report of the Auditor General without MPs reading it. “Have you waived the rules that require MPs to process such reports?\u201d<\/p>\n\n\n\n
Similarly, Leader of the Opposition, Joel Ssenyonyi, warned that approving the loan without proper scrutiny could set a dangerous precedent:<\/p>\n\n\n\n
The Auditor General\u2019s report should be verified and studied before we pass it. It would be good to know what is in the report.\u201d<\/p>\n\n\n\n
In response, Deputy Speaker Thomas Tayebwa defended the urgency of the payment, citing contractual obligations:<\/p>\n\n\n\n
\u201cThis is a time-bound report. If we do not settle by March 31, Umeme will have a blank cheque to determine penalties and interest.\u201d<\/p>\n\n\n\n
Ultimately, the government revised its loan request from USD 190 million to USD 118 million, aligning with the Auditor General\u2019s findings.<\/p>\n\n\n\n
As part of the concession agreement, Umeme is obligated to transfer control of Uganda\u2019s electricity distribution system to the state-owned Uganda Electricity Distribution Company Limited (UEDCL). However, the company has made it clear that it will not hand over the system until it receives the buyout payment in full.<\/p>\n\n\n\n
In a statement, Umeme said: \u201cUmeme\u2019s rights to the Distribution System (including the right to operate it) under the Concession Agreements will only terminate at the end of the Retransfer Transition Period, which shall only occur once the Buyout Amount is paid and received.\u201d<\/p>\n\n\n\n
The government is required to complete the payment within 30 days of the concession ending, meaning the deadline is March 31, 2025. If payment is delayed beyond this period, Uganda could face penalties and interest as stipulated in the concession agreement.<\/p>\n\n\n\n
After months of conflicting figures, political debates, and an official audit, the final amount owed to Umeme has been confirmed at USD 118 million. The power distributor had initially claimed USD 234 million, while the government\u2019s first loan request to settle the debt stood at USD 190 million. However, following a thorough review, the Auditor General verified the actual liability, significantly reducing the amount.<\/p>\n\n\n\n
While Parliament initially approved more than what was necessary, pressure from lawmakers and scrutiny of the Auditor General\u2019s findings led to the government adjusting its loan request to match the correct figure.<\/p>\n\n\n\n
As Uganda prepares for the transition from Umeme to UEDCL, the focus now shifts to ensuring the payment is completed on time and that Ugandans receive improved electricity services under government management.<\/p>\n\n\n\n
Speaker Anita Among summed up the expectations moving forward: \u201cAs UEDCL takes over, we pray that we get better services.\u201d<\/p>\n\n\n\n
With the true cost of the buyout finally settled, the next challenge is ensuring efficiency, transparency, and accountability in Uganda\u2019s electricity sector post-Umeme.<\/p>\n","protected":false},"excerpt":{"rendered":"
The question of how much Uganda truly owes electricity distributor Umeme has been a source of debate, confusion, and political contention. While Umeme initially claimed USD 234 million in unrecovered investments, an audit by the Auditor General, Edward Akol, concluded that the government only needed to pay USD 118 million. Yet, despite this official figure, […]<\/p>\n","protected":false},"author":1,"featured_media":3709,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3708","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"\n