KAMPALA – Umeme Limited, Uganda’s leading electricity distribution company, has issued a statement updating its shareholders and the general public on the status of its electricity distribution concession and related matters.

The company’s 20-year concession for electricity distribution ended on February 28, 2025, and is currently in the Retransfer Transition Period. During this period, Umeme’s rights to the Distribution System, including the right to operate the system, will only terminate once the Buy Out Amount is paid by the Government of Uganda and received by Umeme.

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.

“We are working closely with the Government of Uganda to ensure a smooth transition and resolution of the Buy Out Amount,” said Shonubi Musoke, Company Secretary of Umeme Limited. “We will update our shareholders and the public once the audit report is received and the necessary course of action is determined.”

Once the audit report is received, Umeme will review the findings and determine the necessary course of action. The company will update its shareholders and inform them of any proposed actions, if necessary.

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.

Due to the impact of the Buy Out Amount on the company’s financial statements, the finalization and publication of the financial results have been delayed until the Buy Out Amount is resolved.

In accordance with the Concession Agreements, the Distribution System will only be retransferred to UEDCL or its nominee upon receipt of the Buy Out Amount by Umeme.

Umeme’s Annual General Meeting (AGM) is scheduled for May 22, 2025, where other matters, including any decisions requiring shareholder approval, will be addressed.