Kampala, Uganda — Uganda Electricity Distribution Company Limited (UEDCL) has officially taken over Kilembe Investments Limited (KIL), a rural power distributor in Uganda's Western Service territory, marking the fifth concession acquired by UEDCL.
The handover ceremony, held on Sept.30 at Rwenzori Square in Kasese, was attended by officials from the Ministry of Energy and Mineral DevelopmentThis transition reflects the government's decision not to renew private electricity distribution concessions upon expiration, directing management of these assets to UEDCL.
Over the past seven years, UEDCL has successfully taken over four other concessions, including FERDSULT Engineering Limited in 2017, Bundibugyo Energy Cooperative Society in 2021, Pader Abim Community Multi-Purpose Energy Cooperative Society in 2023, and Kyegegwa Rural Energy Cooperative Society in 2024. Additionally, UEDCL is set to take over Umeme Limited on April 1, 2025.
State Minister for Energy, Okasaai Sidronius Opolot, emphasized UEDCL's vital role in advancing Uganda's socio-economic transformation through enhanced electricity access.
He underscored the importance of sustainable operations and investments in network improvements by UEDCL, aligning with the government's strategic objectives.
"UEDCL should prioritize accelerating electricity access, enhancing distribution infrastructure, minimizing energy losses, combating equipment vandalism, and improving customer service through digital payment systems," Opolot stated.
Acknowledging the challenges ahead, the Minister expressed confidence in UEDCL's capability to fulfill its mandate, while highlighting the necessity for transparency, accountability, and value for money.
He noted the surplus electricity in Uganda, resulting from underutilization and demand constraints, calling for improved planning and investment to meet the growing energy demands of the country. Furthermore, he encouraged Kilembe Investments Limited (KIL) to explore other opportunities within the energy sector.
Pauline Irene Bateebe, Permanent Secretary of the Ministry of Energy and Mineral Development, commended UEDCL for its effective management of the transition of five concessions over the past decade, assuring stakeholders of the government's confidence in UEDCL's ability to ensure smooth operations, job retention, and the execution of critical government initiatives such as the Free Electricity Connections Policy and the Electricity Access Scale-up project. She urged communities in Buhweju, Kasese, Rukungiri, Sheema, and Mitooma to support UEDCL in its efforts to enhance electricity access and reliability.
UEDCL Managing Director, Paul Mwesigwa, recounted the company's successful acquisitions of the previous concessions and welcomed the KIL team as new members of the UEDCL workforce.
He emphasized the company's commitment to teamwork, integrity, and a zero-tolerance policy towards corruption, making it clear that any employee engaging in corrupt activities would face immediate dismissal.
As a fully government-owned entity, UEDCL operates under the supervision of the Ministry of Energy and Mineral Development and the Ministry of Finance, Planning, and Economic Development. The company is tasked with managing assets of 33kV and below nationwide, monitoring concessioned networks, distributing electricity in non-concessioned areas, and operating a pole plant in Lugogo. Currently, UEDCL operates 62 offices across 102 parliamentary districts, employing 487 staff as of September 2024, with further expansion anticipated following the takeover of Umeme in 2025.
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UEDCL's business model focuses on ensuring timely customer connections, maintaining reliable power supply, controlling energy losses, and optimizing payment collection. These strategic efforts have enabled UEDCL to maintain energy losses within regulatory targets and achieve a 100% cash collection rate by August 2024.
