UEDCL seeks $994mn to end blackouts

Eronda

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Uganda Electricity Distribution Company Limited (UEDCL) is seeking $994mn in infrastructure investment over the next five years to address growing pressure on the electricity distribution network, as frequent power outages since the government’s takeover from Umeme continue to frustrate households and businesses.

The investment plan comes amid mounting scrutiny of the state-owned utility, which assumed responsibility for electricity distribution on April 1, 2025, following the expiry of Umeme’s 20-year concession.

The transition was expected to improve service delivery and reduce electricity costs. Instead, consumers have faced persistent and, in some areas, prolonged blackouts, prompting questions about the utility’s capacity to manage the national distribution network.

The concerns have also reached Parliament, where lawmakers have questioned the Energy Ministry and UEDCL over worsening outages and the slow response to customer complaints. In August 2026, the Public Accounts Committee asked the two institutions to explain why electricity reliability had deteriorated despite the change in management.

The operational challenges have coincided with management turbulence at the utility. Former Managing Director Paul Mwesigwa was sent on forced leave in May 2026 amid concerns about the company’s performance, while seven senior managers were subsequently dismissed in June following investigations into workplace culture and operational performance.

Against this backdrop, UEDCL’s latest investment projections offer an indication of the scale of the infrastructure challenge facing the company.

Of the estimated $994mn required over five years, approximately $107mn has been identified for priority projects through December 2027, focusing on network rehabilitation and capacity expansion.
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