The government has clarified why Umeme employees will not be automatically absorbed into the Uganda Electricity Distribution Company Limited (UEDCL) once the former’s concession ends.
According to Minister of Energy Ruth Nankabirwa, the decision is aimed at removing duplication and enhancing efficiency in the electricity distribution sector.
With UEDCL taking over Umeme’s responsibilities, Nankabirwa explained that some jobs are already being performed by UEDCL employees, making it unnecessary to hire former Umeme staff for the same roles.
“We can’t have two people doing the same job,” Nankabirwa said. “If we interview both a Umeme employee and a UEDCL employee for the same position, one of them will inevitably lose.”
The government’s objective is to achieve savings through restructuring and ensure a smooth transition of electricity distribution services from Umeme to UEDCL.
While some Umeme employees may lose their jobs, the government has encouraged eligible staff to apply for new positions that will be advertised soon.
However Ziria Tibalwa, the Chief Executive Officer of Electricity Regulatory Authority (ERA) has cast doubts on Government’s preparedness to take over from Umeme in April 2025, citing the delays by Government to secure the US$50 Million investment required by Uganda Electricity Distribution Company Limited as initial investment.
She made the remarks while appearing before Parliament’s Committee on National Economy, during the scrutiny of the US$190 Million loan from Stanbic Bank Uganda, for the buyout of Umeme Limited.
Tibalwa also attributed the current power blackouts on the nature of clauses in the Umeme concession agreement that bars Government from intervening, until the concession comes to its natural end.
