Private electricity distribution concessions, and the 2022 decision to end them
Uganda ran most of its electricity distribution through private concessions, with Umeme selling about 96 percent of grid energy to end users in 2024, but a Cabinet directive of October 2022 approved the non-renewal of all expiring concessions, and in 2024 the state utility UEDCL took over the assets of two private distributors whose licences were not renewed.
2 licences, private distribution licences not renewed and taken over by uedcl in 2024 (kil and krecs), 2024. 96 %, umeme's share of grid energy sold to end users, the private concession at its peak (about), 2024. Electricity Regulatory Authority (Uganda), Electricity Supply Industry Performance Report for the Year 2024, retrieved 2026-10-02.
The move, and what it needed
The government concessioned the national distribution network to a private operator for 20 years under ERA regulation, then the Cabinet decided not to renew any expiring concession and folded each private distributor back into the state company as its licence ran out.
Preconditions
- A regulator able to set tariffs and verify investment over a long concession
- A state utility able to absorb staff, customers and assets at handover
- A settled buyout value for the operator's unrecovered investment, which was disputed
Where else it has been used: Uganda also took back Eskom Uganda's 20-year generation concession at its end in 2023 (per an ERA annual report, era.go.ug download wpdmdl=7485); Lesotho's hospital PPP and other African utility concessions show the same pattern of a long PPP ended at expiry rather than renewed.
Limits: The figures are in a PDF (the 96 percent and Table 6 on PDF page 21; the Cabinet directive and the KIL and KRECS takeover on PDF page 24). The report covers 2024, when Umeme still operated; it does not record the end of Umeme's own concession, which ran to 2025. That the state utility took over Umeme's area is documented by UEDCL itself: its '100 Days in the Driving Seat' report (https://www.uedcl.co.ug/wp-content/uploads/2025/07/100DaysInTheDriving-Seat-.pdf, page 1) says that on 1 April 2025 UEDCL began its national mandate of electricity distribution; ERA's tariff schedules for Umeme on its site also stop after January to March 2025. The started year is the start of the Umeme concession as commonly dated, not stated in this report. The concession's record is contested: ERA reports Umeme's losses at 16.0 percent in 2024 against a 13.24 percent target, and the decision to end private distribution was a policy choice by the Cabinet, so 'dismantled' records a decision, not a collapse. The report gives no buyout amount; an ERA annual report on the same site (wpdmdl=7485) lists 'no clear asset registers to determine buyout amount for UMEME' as a risk of the concession's expiry.