KAMPALA – A special audit report submitted to Speaker Anita Among has revealed that the buyout figure for Umeme Limited, Uganda’s leading electricity distribution company, has been significantly reduced to $118 million. This is substantially lower than the initial $190 million approved by Parliament.
The report’s findings have ignited calls to halt the loan approval from Stanbic Bank, fueling controversy over the buyout process. However, details of the report remain shrouded in secrecy, as Auditor General Edward Akol and his team have declined to comment on the matter.
The development comes as Umeme Limited awaits the outcome of the audit report, which will determine the Buy Out Amount to be paid by the Government of Uganda. The company’s 20-year concession for electricity distribution ended on February 28, 2025, and is currently in the Retransfer Transition Period.
According to sources familiar with the matter, the reduced buyout figure has raised questions about the valuation process and the potential implications for the energy sector. “The initial valuation of $190 million was based on certain assumptions and projections,” said a source. “However, the audit report seems to suggest that those assumptions were flawed, leading to a lower valuation.”
The controversy surrounding the buyout figure has sparked intense debate about the country’s energy sector and the role of private players like Umeme. Critics argue that the reduced buyout figure is a clear indication that the company’s valuation was inflated, and that the government should reconsider the entire buyout process.
As the controversy unfolds, stakeholders are eagerly awaiting further clarification on the matter. The Buy Out Amount must be paid within 30 days following the end of the concession term, specifically by March 31, 2025. If the payment is not received by this deadline, penal interest will be applied as stipulated in the Concession Agreements.
The Umeme Limited saga has sparked intense debate about the country’s energy sector and the role of private players like Umeme. As the situation continues to unfold, one thing is clear – the fate of Uganda’s energy landscape hangs in the balance.
Umeme has been at the center of controversy surrounding its buyout by the Government of Uganda. The company’s 20-year concession for electricity distribution ended on February 28, 2025, and is currently in the Retransfer Transition Period.
The estimated Buy Out Amount of USD 234 million, submitted by Umeme, is currently undergoing audit by the Government of Uganda through the Office of the Auditor General. The audit process is ongoing, and Umeme awaits the report before final reconciliation.
The company’s Annual General Meeting (AGM) is scheduled for May 22, 2025, where other matters, including any decisions requiring shareholder approval, will be addressed.
