Uganda is set to pay approximately $225 million to power distributor Umeme Ltd as compensation for unrecovered capital investments in the national grid. Umeme, listed on both the Uganda and Kenyan stock exchanges, has operated a twenty-year power concession in Uganda since 2005. With the concession concluding in March 2025 and the government rejecting an extension request, the agreed terms stipulate the payment to Umeme for unrecouped investments. The Ministry of Energy and Mineral Development's Permanent Secretary revealed the estimated buy-out amount and stated that the government's auditor general would conduct a final review before payment.
Following the end of Umeme's concession, the Ugandan government plans to enter into a joint venture with a private company, in collaboration with the state-owned Uganda Electricity Distribution Co Ltd (UEDCL), to operate the grid competitively. The private sector operator procurement process will prioritize UEDCL's majority shareholding in the partnership, ensuring a competitive and strategic transition. Uganda's power generation capacity is approximately 1,400 megawatts.