By Mike Sebalu
The government has announced that it will not renew the concession for electricity distribution company, Umeme Limited after expiry of its contract.
Umeme currently holds a 20-year concession from the government of Uganda whose term expires on 30th March 2025.
In a press statement issued this morning, Umeme confirms that it has formally received written communication from the government, notifying it that the current concession will continue to run until its natural end in 2025 as stipulated in the agreement, but there will be no renewal.
“The Company has formally received written communication from the Government of the Republic of Uganda, notifying it that the current concession will continue to run until its natural end in March, 2025 as stipulated in the Concession Agreements after which, there will be no renewal.” Umeme’s statement reads in part.
The company meanwhile expresses commitment to performing its obligations and will continue to operate and maintain the electricity distribution system in line with prudent utility practices.