Uganda's state-owned electricity distributor, UEDCL, says it needs $994m over the next five years to improve power supply and reduce outages, as households and businesses continue to experience frequent blackouts following the government's takeover of electricity distribution from Umeme.
The company took over the distribution network on 1 April 2025, after Umeme's 20-year concession expired. The government had hoped the transition would improve electricity services, lower costs and give it greater control over a critical national asset.
However, the period since the handover has been marked by complaints about frequent outages, prolonged interruptions and delays in restoring electricity, raising questions about UEDCL's ability to manage the network.
The concerns have attracted parliamentary scrutiny, with lawmakers demanding explanations from the company and the Ministry of Energy over the reliability of electricity supply.
UEDCL has also experienced changes in its senior management. Former Managing Director Paul Mwesigwa was sent on forced leave in May 2026, while seven senior managers were dismissed the following month after investigations into the company's performance and workplace culture.
The company says much of the pressure on the network is linked to growing demand and infrastructure constraints that require substantial investment to address.
Rising demand puts pressure on distribution network
Speaking at a media briefing in Kampala last week, Acting Managing Director Eng. Joselynne R. Rwabwogo said UEDCL was working to address immediate supply problems while planning longer-term improvements.
The company's customer base has grown by about 71% over the past five years, from 1.64 million customers in 2021 to approximately 2.8 million today.
This rapid growth has increased pressure on electricity lines, transformers and substations, particularly in areas where new connections have outpaced infrastructure expansion.
"We are focusing on addressing capacity constraints in several priority areas. In Gayaza, for example, we have initiated work on an additional eight-kilometre electricity line that will allow us to transfer demand to a substation with available capacity. We are also working closely with UETCL on interventions to relieve pressure on the network along Masaka Road," she said.
Other areas requiring attention include Namugongo, the Gayaza corridor covering Nakwero, Kiwologooma, Kitukutwe, Kijabijjo and Busukuuma, and the Kakiri corridor stretching from Kabulengwa to Wamala.
UEDCL says it has already completed improvements in Seeta, Bukerere, Kawanda, Mbarara and Bombo.
In Mubende, changes to the network reduced recorded outages from 12 in one month to three in the following month. Emergency repairs to underground cables affecting Entebbe, Namasuba and Kisubi have also been completed.
Rwabwogo acknowledged that some of the problems would take time to resolve because of the investment required.
"Some of the challenges affecting electricity supply require significant infrastructure investment and cannot be resolved overnight. However, we are implementing targeted measures to address immediate constraints while working towards more sustainable improvements. We recognise the concerns customers have raised and remain committed to improving the reliability of the electricity they receive," she said.
The company is also increasing the number of technicians available to respond to faults and providing additional standby personnel to support network operations.
During the year ending July 2026, UEDCL replaced 1,110 distribution transformers, exceeding its target of 853.
It also reduced the average time taken to replace transformers from 38 days at the end of June to less than 14 days by the end of August.
However, shortages of transformers remain a challenge. Demand for the equipment has increased beyond the production capacity of some local manufacturers supplying UEDCL under the Buy Uganda, Build Uganda (BUBU) framework.
To address the problem, the company is reviewing its procurement plans and engaging the Public Procurement and Disposal of Public Assets Authority (PPDA) on additional sourcing options. It is also working with local manufacturers to increase production.
Other measures include clearing vegetation around electricity lines, replacing ageing equipment and strengthening efforts to prevent vandalism and theft of electricity infrastructure.
UEDCL moves to clear connection backlog
UEDCL is also working to address delays in connecting new customers.
Chief Commercial and Operations Officer Isaac Katewanga said the company had inherited a backlog of connection applications, which was made worse by earlier shortages of electricity meters.
"We have sufficient meter supplies at the moment and are working closely with the Uganda National Bureau of Standards (UNBS) to accelerate meter testing and clearance. This is helping us make more meters available for installation and increase the number of customers being connected," Katewanga said.
The company connected approximately 80,000 customers over the past two months and hopes to increase monthly connections to 50,000 by December.
It is also improving coordination between its commercial, customer service and technical teams to reduce delays and provide customers with better information about reported faults and when electricity is likely to be restored.
"We have sufficient meter supplies at the moment and are working closely with the Uganda National Bureau of Standards (UNBS) to accelerate meter testing and clearance. This is helping us make more meters available for installation and increase the number of customers being connected
Chief Commercial and Operations Officer Isaac Katewanga
$994m investment needed to modernise network
The investment required to improve the network is substantial. UEDCL estimates that it needs $994m over the next five years to expand electricity access, improve reliability and replace ageing infrastructure.
Of this amount, about $107m has been identified for priority projects up to December 2027, mainly focusing on repairing existing networks and increasing capacity.
The company says the improvements will be important to supporting Uganda's economic ambitions, including industrial development, agriculture, healthcare and business growth under the government's Tenfold Growth Strategy.
"Reliable electricity is essential to supporting industrial growth, healthcare, agriculture, businesses and households. As demand continues to increase, our responsibility is to strengthen the distribution network while improving the quality of service customers receive," Rwabwogo said.
The government has defended the return of electricity distribution to public management, arguing that it provides an opportunity to strengthen local technical expertise and invest more directly in the country's infrastructure.
One immediate benefit highlighted by UEDCL is a reduction in the end-user electricity tariff from approximately Shs486 to Shs396 per unit, a fall of nearly 19%.
However, lower electricity prices have not removed consumers' concerns about frequent power interruptions.
