Kenya: Umeme Issues Profit Warning Amid Fall in Operating Revenue

30 January 2026
Capital FM (Nairobi)
By Phidel Kizito

Nairobi — Cross-listed firm Umeme has issued a profit warning, signalling a likely consecutive loss for the year ending December 2025 following the cessation of its electricity distribution operations in Uganda.

In a notice to shareholders, the company said it expects to post a loss for the 2025 financial year, extending losses recorded in 2024, after its 20-year electricity distribution concession in Uganda formally ended on March 31, 2025, cutting off operating revenue from the second quarter of the year.

"As previously communicated at the Annual General Meeting held in May 2025, the Company incurred a loss for the year ended 2024 and shall likely register a consecutive loss for the year ended 31st December 2025," read the notice in part.

"This is primarily due to the cessation of operating revenue generation at the end of the first quarter of 2025 following the natural end of the 20-year electricity distribution concession in Uganda on 31st March 2025."

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The profit warning underscores the financial impact of Umeme's exit from Uganda's power distribution market, where the company had been the sole electricity distributor since 2005, and marks a transition period as it awaits compensation claims tied to the handover of assets to the state.

Umeme said it is actively pursuing outstanding claims against the Government of Uganda through a dispute resolution process provided for under the privatisation agreements, with the outcome expected to be a key determinant of its future financial position.

The utility service provider added that detailed financial results and the full basis of its performance will be disclosed in its audited financial statements for the year ended December 31, 2025, once the annual audit process is completed.

The company's shares have remained under pressure amid uncertainty over the timing and size of any settlement, with investors closely watching developments around the compensation process as Umeme charts its post-concession strategy.

Read the original article on Capital FM.

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