Overview:
Prime Minister Nabbanja orders an immediate halt to the energy ministry's plan to hire a new private power distributor, citing lack of Cabinet approval.
Prime Minister Robinah Nabbanja has ordered an immediate halt to the Ministry of Energy and Mineral Development’s reported plans to hire a new private company for electricity distribution, asserting the move was initiated without the necessary Cabinet or presidential approval.
In a Dec. 3, 2025, letter to Energy Minister Ruth Nankabirwa, the premier directed the suspension of any plans for reintroducing private partnerships or joint ventures in the management of the national power distribution network.
Nabbanja stressed that any such major policy decision must be deferred until the government’s Rationalization of Agencies and Public Expenditure policy is concluded.
“Wait until the end of this election period for further guidance from the Cabinet and His Excellency the President on this matter,” the prime minister wrote.
The intervention comes just six months after the government, led by the state-owned Uganda Electricity Distribution Company Limited, or UEDCL, officially took over power distribution assets and the workforce following the expiration of Umeme’s 20-year concession on April 1. The takeover was intended to reduce electricity tariffs and improve service delivery.
Reports indicate the Ministry of Energy’s attempt to engage a new private distribution partner surfaced amid internal controversy and intense lobbying for the lucrative deal. Sources suggested that up to five companies were vying for the partnership, with some sections of stakeholders reportedly being flown to Dubai on all-expenses-paid trips to lobby for consideration.
The pressure intensified after a controversial internal memo from UEDCL’s top management suggested the company was struggling to manage the entire network and was engaging the energy ministry to explore the possibility of an investor.
In the same directive, Nabbanja also instructed Nankabirwa to stop the planned termination of several UEDCL senior management team members.
The terminations were reportedly being based on a confidential performance review report compiled by the Electricity Regulatory Authority, or ERA, which covered the first six months of UEDCL’s operation following the Umeme exit.
Nabbanja cautioned that the “massive termination” of the senior management team would “significantly cause unnecessary destabilisation in the general UEDCL workforce,” potentially increasing power outages and adversely affecting the industrial sector and the government’s image.
She ordered the UEDCL board to halt all related processes and to instead support the current senior management in stabilizing the network, which she stated was left in a “sorry operational state by Umeme.”
Ministry’s Response
The Ministry of Energy, through its assistant commissioner of communications and information management, Dr. Patricia Litho, acknowledged receipt of both the prime minister’s letter and the ERA performance assessment.
Litho confirmed that the ministry had directed the UEDCL board to investigate the lapses identified in the ERA report, make corrective actions and restore confidence in the state-owned company.
However, the ministry’s official statement did not address the controversy surrounding the alleged plan to introduce a new private distribution company, noting only that updates would be provided once the internal inquiry was complete.