Ugandans have been left shocked after the Uganda Electricity Distribution Company Limited (UEDCL) announced a massive financial loss of Shs 193 billion barely one year after taking over electricity distribution operations from Umeme. The revelation has sparked widespread concern among citizens, energy sector stakeholders, and government officials who had hoped the transition would improve efficiency and service delivery across the country.
The huge loss was officially disclosed during the company’s Annual General Meeting chaired by Energy Minister Ruth Nankabirwa. The meeting came at a tense moment for the power distributor following recent leadership changes and growing public criticism over poor service delivery, delays in handling power outages, and concerns about accountability within the company.
Only days before the meeting, Minister Nankabirwa made dramatic changes at UEDCL by removing board chairperson Lydia Ochieng Obbo from her position and sending Managing Director Paul Mwesigwa on forced leave. The minister reportedly cited poor performance and serious management concerns as reasons behind the shake-up at the state-owned electricity distributor.
According to the minister, investigations and internal assessments revealed weaknesses in supervision, irregular awarding of contracts to firms considered unqualified, and failure to properly refurbish important electricity infrastructure inherited from Umeme. Among the key concerns were transformers and other power equipment that reportedly remained in poor condition despite promises to improve the network.
The situation has raised fresh questions about whether UEDCL was fully prepared to take over one of the country’s most sensitive and demanding sectors. Many Ugandans had expected improved electricity distribution and better customer service after the government reclaimed control of the network from the private operator that managed it for nearly two decades.
Despite the huge financial loss, UEDCL has also registered some notable achievements since assuming control of the electricity distribution system. Reports presented during the meeting showed that the company’s customer base increased dramatically from about 178,000 customers to more than 2.7 million electricity connections nationwide.
Officials explained that the increase in customer numbers has also helped boost revenue collections. UEDCL reportedly generated approximately Shs 669.4 billion from electricity sales, a significant increase compared to previous years. The growth in revenue has been linked to increased access to electricity in urban centers and rural communities across Uganda.
However, many analysts argue that the increase in revenue alone cannot hide the serious operational and management challenges currently facing the company. Critics say the huge loss indicates deeper structural problems that must be addressed urgently before the situation worsens further.
Minister Nankabirwa also pointed to slow responses to electricity emergencies and delays in fixing faults in different parts of the country. She noted that many customers have continued to complain about prolonged blackouts, damaged transformers, and poor communication from the company whenever power interruptions occur.
Another challenge highlighted during the meeting was the implementation of the Buy Uganda Build Uganda (BUBU) policy. According to the minister, reliance on local suppliers under the policy has sometimes slowed field operations because some suppliers reportedly struggled to deliver materials and equipment on time.
The delays have affected important maintenance and expansion projects, leading to frustration among consumers who expected faster improvements in electricity supply after the government takeover. Some businesses have reportedly suffered losses due to unstable power and delayed repairs.
Energy experts believe the transition from Umeme to UEDCL may have been more complicated than many people initially expected. Managing a national electricity distribution network requires strong technical expertise, efficient procurement systems, and quick response mechanisms to maintain stable power supply across the country.
Some observers have also questioned whether political interference and internal power struggles could be contributing to the company’s current difficulties. The recent dismissal of senior officials has fueled speculation about deeper disagreements within the management structure of the organization.
Nevertheless, the government insists that the challenges facing UEDCL are temporary and can be solved through reforms and stronger leadership. Minister Nankabirwa reaffirmed government commitment to transforming the company into a reliable and customer-focused national utility capable of meeting Uganda’s growing electricity demands.
She emphasized the need for stronger governance systems, improved accountability, and more transparent procurement processes. The minister also called for faster execution of projects and better supervision of contractors handling electricity infrastructure works.
The developments at UEDCL come at a time when Uganda is pushing to expand electricity access to millions of households and support industrial growth through reliable energy supply. Stable electricity remains one of the key pillars needed to attract investment and boost economic development.
Business owners and manufacturers have particularly expressed concern over the company’s performance because unreliable electricity can negatively affect production and increase operating costs. Many investors are closely monitoring the situation to see whether the government can stabilize the power sector.
Ordinary Ugandans have also continued to voice frustrations over frequent power outages and rising expectations that came after Umeme’s exit. While some people welcomed the government’s takeover of electricity distribution, others now fear the transition could lead to even bigger service delivery challenges if not handled properly.
Meanwhile, UEDCL officials have promised to work on the weaknesses identified by the government and improve customer satisfaction. Company representatives say plans are underway to strengthen operations, improve technical response teams, and upgrade old electricity infrastructure inherited from the previous distributor.
As investigations and internal reforms continue, many Ugandans are waiting to see whether the leadership changes and government interventions will help restore confidence in the company. The Shs 193 billion loss has become a major talking point across the country, with citizens demanding accountability, transparency, and better service from the national electricity distributor.
The coming months are expected to be critical for UEDCL as it faces mounting pressure to prove that it can effectively manage Uganda’s electricity distribution network while reducing losses, improving efficiency, and delivering reliable power to millions of consumers across the country.
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