The Minister of Energy and Mineral Development, Ruth Nankabirwa, has stated that some employees of Umeme Limited will inevitably lose their jobs as Uganda Electricity Distribution Company Limited (UEDCL) takes over electricity distribution operations after Umeme’s concession ends on March 31, 2025.
This decision aims to avoid redundancy since certain roles performed by Umeme staff are already covered by UEDCL employees.
Nankabirwa made the remarks on March 18, 2025, while addressing Parliament’s Committee on Environment and Natural Resources during discussions about the government’s request to borrow $50 million for UEDCL as an initial investment.
“Most workers of Umeme, their applications were rejected. But the objective of restructuring was to make sure that we have a saving, remove duplication and enhance efficiency. Where we find out your job is already taken in UEDCL, we automatically drop you,” Nankabirwa stated.
According to Nankabirwa, over 180 employees are expected to lose their jobs due to concerns over duplication of roles. The government has established a post-Umeme organizational structure with 2,712 employment openings to accommodate both UEDCL and Umeme staff where possible.
In the related development, Ziria Tibalwa, the Chief Executive Officer of Electricity Regulatory Authority (ERA) doubted Government’s preparedness to take over from Umeme in April 2025, citing the delays by Government to secure the US$50 Million investment required by Uganda Electricity Distribution Company Limited as initial investment.
She made the remarks while appearing before Parliament’s Committee on National Economy, during the scrutiny of the US$190 Million loan from Stanbic Bank Uganda, for the buyout of Umeme Limited.
Tibalwa also attributed the current power blackouts on the nature of clauses in the Umeme concession agreement that bars Government from intervening, until the concession comes to its natural end.
In response, The Auditor General asked Parliament’s Committee on National Economy to halt the approval of the US$190Million (Shs692.688Bn) loan from Stanbic Bank Uganda for the buyout of Umeme until the completion into the audit of the figures submitted by Umeme.
The request was made by Joseph Hirya, Director of Audit, Office of the Auditor General, while reacting to concerns raised by Ziria Tibalwa, Chief Executive Officer of Electricity Regulatory Authority over the various figures submitted by Umeme regarding the buyout amount, although two studies have placed the buyout amount at US$127 Million.
This funding is part of broader preparations for the transition, which includes addressing operational challenges and ensuring continuity in electricity services.
