What happens when Umeme ends its services in Uganda?
From 31st March 2025, Umeme ends its activities in Uganda officially. UMEME Limited, the country’s primary power distributor for the past two decades, will exit the market when its concession expires on March 31. Taking its place is the state-owned Uganda Electricity Distribution Company Limited (UEDCL), which will assume responsibility for supplying power to millions of end users starting April 1. However, this transition comes with a significant human cost: at least 500 Umeme employees are expected to lose their jobs, a figure that has sparked debate and discontent among stakeholders.
How many people will lose jobs when Uneme ends?
The scale of redundancies has become a point of contention. Energy and Mineral Development Minister Ruth Nankabirwa, in an interview with NTV Uganda on March 11, 2025, suggested that only about 190 Umeme staff would be affected by the handover. Speaking on the sidelines of an orientation workshop for new members of Parliament’s Committee on Environment and Natural Resources in Kampala, she downplayed the impact, emphasizing efforts to streamline operations. Yet, an analysis of Umeme’s existing workforce and UEDCL’s newly unveiled staffing structure paints a starkly different picture—one where the job losses could be far greater.
Umeme, which has managed electricity distribution since 2005, employs approximately 3,200 people, including 2,000 permanent staff and 1,200 on contract. In contrast, UEDCL’s structure, rolled out in January 2025, accommodates just 1,500 employees. This reduction eliminates at least 500 positions outright, with the fate of the 1,200 contract workers hanging in the balance. Sources within the industry argue that the actual number of redundancies could climb even higher as the transition unfolds.
Why is UEDCL sacking UMEME staff?
The root of these job cuts lies in a deliberate restructuring effort. Paul Mwesigwa, UEDCL’s managing director, acknowledged that the new framework is leaner than its predecessor. He defended the move as a necessary adaptation to modern technology and regulatory mandates. “The structure we’ve adopted was approved by our shareholder, the Board, and the Electricity Regulatory Authority (ERA). It’s designed for efficiency, leveraging digital tools, human resources, and environmental considerations to deliver reliable power,” Mwesigwa explained.
Minister Nankabirwa echoed this sentiment, arguing that eliminating redundant roles is essential for operational effectiveness. “Duplication of duties undermines efficiency,” she told NTV. “We’ve had to phase out positions that no longer serve a purpose in the new setup.” However, this justification has done little to quell the unease among Umeme’s workforce, many of whom see the changes as a betrayal of earlier promises.
When did Umeme start distributing power in Uganda and how did it perform?
Umeme’s tenure saw remarkable expansion in Uganda’s electricity sector. When it took over in 2005, the national grid served just 280,000 consumers. Today, that number stands at 2.3 million—a testament to the company’s investment in infrastructure and staffing. Its organizational structure evolved to support this growth, with specialized roles like area managers and engineers driving both technical and commercial operations. Career progression was a cornerstone of this model, fostering expertise and stability.
UEDCL’s approach, however, marks a sharp departure. Critics argue that its leaner structure fails to account for the current consumer base or the complexity of managing a modern grid. Key departments, such as customer service and digital operations, appear understaffed, according to insiders. “The call center has been allocated minimal personnel, and front-facing staff are stretched thin,” one source familiar with the framework revealed. “There’s no provision for a digital manager or team to handle complaints via platforms like WhatsApp, despite the growing reliance on technology.”
What was the original plan for UEDCL?
The transition has also exposed a rift between earlier commitments and current realities. In July 2024, Mwesigwa told Parliament’s Committee on Commissions, Statutory Authorities, and State Enterprises (Cosase) that UEDCL would need 3,000 workers to manage post-Umeme operations, with priority given to absorbing Umeme’s 2,502 employees. “We’ll interview all willing candidates and offer appointments,” he assured lawmakers. He reiterated this pledge in December, estimating a need for 3,175 staff—far exceeding Umeme’s workforce plus UEDCL’s existing 515 employees.
Yet, as the handover nears, these projections have evaporated. Affected employees now accuse UEDCL and the Ministry of Energy of backtracking. Two dossiers, reportedly submitted to the ERA and the Inspectorate of Government (IG), allege mismanagement in the recruitment process. One document claims that over 400 experienced Umeme workers, including critical experts, have been sidelined due to bureaucratic inflexibility. Among those named are Allan Kamba, a system control specialist vital to power stability; Victoria Namubiru, a metering innovator behind prepaid systems for high-voltage clients; and Abby Gwaivu, a distribution veteran overseeing industrial zones near Kampala.
The dossiers further criticize UEDCL’s rigid hiring criteria, such as requiring engineering degrees and registration with the Uganda Institute of Professional Engineers (UIPE)—rules that disqualified seasoned staff nearing the completion of these qualifications. Allegations of bias also surface, with claims that UEDCL favored its own personnel by limiting Umeme applicants to two position choices (down from three) and stacking interview panels with its representatives.
What happens in the recruitment process of UEDCL
Mwesigwa has pushed back against these accusations. He clarified that the reduction in application options followed guidance from the Ministry of Public Service, not internal bias. On the interview process, he highlighted outcomes that favored Umeme candidates: “A panel of UEDCL management and Board members selected eight heads of departments—six from Umeme, two from UEDCL. How does that suggest unfairness?” ERA spokesperson Jeje Wandera similarly dismissed the complaints as baseless, pointing to the regulator’s track record of overseeing a globally recognized sector. “These claims don’t warrant a response,” he said, adding that any formal petition would be addressed by ERA’s board.
What is the way forward for UEDCL?
Amid the uncertainty, Nankabirwa has proposed a partial solution: retaining displaced Umeme staff on a reserve list for future opportunities. “We’ll prioritize them for contractor roles or recall them as needs arise,” she said last week. Yet, for many workers, this offers little comfort. Umeme employees are now calling on ERA and the Inspectorate of Government to halt UEDCL’s recruitment exercise and review the transition process, arguing that it threatens both livelihoods and the sector’s operational integrity.
As Uganda braces for this historic shift in its energy landscape, the human toll of the Umeme-UEDCL handover looms large. With hundreds of jobs on the line and questions swirling about competence and fairness, the coming weeks will test the government’s ability to balance efficiency with equity. For now, the 500-plus workers facing an uncertain April 1 await answers—and action.
