Uganda Electricity Distribution Company Limited (UEDCL) owes two local electricity equipment manufacturers approximately Shs7.52 billion in unpaid invoices, raising questions about the government's commitment to supporting domestic industry while struggling to maintain the country's electricity distribution network.
In its report on persistent power supply interruptions, Parliament's Committee on Environment and Natural Resources found that UEDCL owed Steema Transformers and Electricals (U) Limited approximately Shs4.453 billion across 87 invoices, while Orion Transformers and Electrics Limited was awaiting Shs3.068 billion across 28 invoices.
Of the combined amount, approximately Shs3.14 billion, covering 81 invoices, had remained unpaid for more than 90 days.
The committee cautioned that the figures were based on submissions from only two of nine local suppliers and should not be interpreted as the utility's total outstanding debt to domestic electricity equipment manufacturers.
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"The Committee observes that, although this evidence comes from a sample of two of the nine local suppliers, invoices outstanding for more than a year indicate that the problem is not confined to recent cash-flow pressure," the report states.
It adds that unpaid obligations of this scale are inconsistent with the government's Buy Uganda Build Uganda (BUBU) policy and risk weakening the domestic supply base needed to restore electricity after faults.
The findings are significant because transformers, electricity meters, conductors and protection equipment are essential to repairing damaged infrastructure, maintaining the distribution network and implementing expansion projects.
The committee warned that delayed payments could undermine manufacturers' ability to purchase raw materials, sustain production and maintain adequate stocks for urgent electricity network repairs.
Steema told the committee that it employs approximately 60 people, 95 per cent of whom are Ugandan, and has the capacity to manufacture about 200 new transformers and repair another 100 each month.
However, actual monthly supplies to UEDCL ranged between 100 and 150 new transformers and 75 to 95 repairs, depending on purchase orders, demand and payment arrangements.
The company also reported that its distribution-transformer supply contract expired in September 2026 without a replacement, while a newly awarded transformer-repair contract had not been signed.
Steema further told the committee that delayed payments and currency movements had contributed to losses of approximately Shs400 million, while material prices had increased by nearly 30 per cent. The committee cautioned that these estimates had not been independently verified.
Orion reported that Shs3.068 billion remained unpaid across 28 invoices. Of this amount, Shs278.4 million across 14 invoices had been outstanding for more than a year, while another Shs924.98 million across three invoices had remained unpaid for between three and six months.
The committee recommended that UEDCL, in consultation with the Public Procurement and Disposal of Public Assets Authority, reconcile outstanding contracts, purchase orders, deliveries, invoices and payments involving the two companies, before extending the exercise to all nine local suppliers.
It also called for a time-bound plan to settle verified supplier arrears, prioritising older and undisputed invoices while observing applicable financial controls.
The inquiry comes amid wider concerns about UEDCL's procurement and supply chain following its takeover of electricity distribution from Umeme in April 2025.
The committee said promoting local manufacturing must go hand in hand with compliance with procurement laws, quality assurance, value for money and demonstrable supplier capacity.
It recommended that UEDCL publish quarterly forecasts of its requirements for transformers, meters, conductors and other essential materials to help local manufacturers plan production and imports.
The report also highlights the financial pressures surrounding the utility, with government entities owing UEDCL approximately Shs269.84 billion as of September 30, 2026, up from Shs224.84 billion at the end of June.
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The Ministry of Defence and Veteran Affairs accounted for approximately Shs190.53 billion, followed by Uganda Prisons with Shs29.86 billion and the Uganda Police Force with Shs25.88 billion.
Although the report does not establish that these government arrears directly caused the unpaid supplier invoices, the figures illustrate the competing financial obligations facing the distributor.
For UEDCL, which is responsible for maintaining and expanding an extensive electricity distribution network, delayed payments by customers and outstanding obligations to suppliers present challenges for cash-flow planning and the timely procurement of essential equipment.
The committee wants the utility to account for its outstanding obligations and demonstrate how it intends to settle verified supplier debts while ensuring uninterrupted access to equipment needed to maintain the electricity network.
