Ugandans happy as UMEME packs

News reaching our desk indicate that UMEME is on its way out of business in Uganda. Ugandans are very happy at this development.

Edwin Muzahura says, ” We cant wait for this concession to end! Umeme shall for ever be remembered as one of the worst agreements ever made by any Country in the world!”

Roger Byaruhanda says, “2025 is like half a century to me…Umeme can’t u offer to ‘Revoke’ and go earlier my wicked friends?”

Harry Sagara says, “Maybe this is when your STANDBY GENERATOR comes in. Just saying!”

Mugabe Yonah Kasisi says, “Even remaining 2yrs are more like centuries…. T shud have left 5yrs back. Very unfriendly expensive services.”

Umeme Limited is the largest energy distributor in Uganda, distributing about 97 percent of all electricity used in the country. The shares of the stock of the company are listed on the Uganda Securities Exchange and are cross listed on the Nairobi Stock Exchange.

Umeme was formed in 2004 when the government of Uganda leased the Uganda Electricity Distribution Company Limited to a consortium belonging to Globeleq (56 percent), a subsidiary of the Commonwealth Development Corporation of the United Kingdom, and Eskom of South Africa (44 percent).

Umeme’s contract will run its full course but will not be renewed by government in 2025.  Fears that the Umeme concession would be terminated before 2025 have therefore been put to rest.

Government is going ahead with plans to form its own company to take on distribution of power in the areas that Umeme is currently covering.

Umeme confirmed the development in a statement to the stock exchange today.  “Pursuant to Rule 36 (1) (a) and (b) of the Uganda Securities Exchange (USE) Listing Rules, 2021 the Company is required to amongst others disclose to its shareholders and the general public new developments in its sphere of activity which are not public knowledge and which may lead to material movements in the ruling price of its listed securities,” Umeme said in a press statement today.