The Uganda Electricity Distribution Company Limited (UEDCL) has described 2025 as a landmark year, marked by major reforms, infrastructure expansion and improved service delivery following the government’s takeover of electricity distribution operations.
Speaking during the company’s year-in-review, UEDCL Head of Corporate and Stakeholder Affairs, Jonan Kiiza, said the turning point came on April 1, 2025, when UEDCL officially assumed operations from Umeme Limited, ushering in a new era of government-led electricity distribution.
“The transition on April 1 marked the beginning of a new storyline in Uganda’s electricity sub-sector, with government now fully in charge of generation, transmission and distribution under the second-generation electricity reforms,” Kiiza said.
As part of the transition, UEDCL successfully absorbed seven electricity concessions, including Umeme and Hydromax, the latter completed in July 2025. The company also recruited 4,653 employees, contributing to government efforts to create jobs for young and mid-career Ugandans.
Major Investments in Network Reliability
To address reliability challenges and rising electricity demand, UEDCL undertook extensive infrastructure upgrades across the country. In 2025, the company replaced more than 206 faulty transformers and installed 132 new transformers to ease network overloads.
Seven major substations were upgraded, including Kakiri, which was expanded from 14MW to 28MW, and Kampala House, upgraded from 20MW to 34MW, improving supply to areas such as Salama, Makindye, Kabowa and Kisugu. Other upgrades included substations in Kumi, Kabale (Ruchiga), Masaka and Mubende.
UEDCL also constructed about 40 kilometres of medium-voltage lines and secured land for two new substations in Kampala, including the Central Business District and Nakasero, as well as a new substation in Majid to relieve pressure on Kawanda and Namugongo.
“These investments have helped us stabilise the network in the short term while laying a foundation for long-term reliability,” Kiiza noted.
Customer Growth, Financial Stability and Future Outlook
During the year, UEDCL connected 180,000 new customers to the national grid and fully integrated 128,000 customers inherited from the previous concessionaire. Electricity demand also grew significantly, with peak grid consumption rising from 986MW to 1,145MW, reflecting increased industrial and household use.
Financially, the company recorded a 96.7 percent revenue collection rate and ensured the prompt payment of electricity transmission bills, strengthening confidence in the government-owned distributor. In December 2025, UEDCL secured a US$50 million loan from Absa Bank to support capital investments in network expansion and new connections.
UEDCL also completed a nationwide rebranding exercise, rolled out public awareness campaigns on safe and efficient electricity use, and received PPDA accreditation for its procurement processes, significantly reducing lead times for acquiring critical equipment such as meters, transformers and cables.
Looking ahead to 2026, Kiiza said UEDCL has packaged several major projects, including new substations, line upgrades, transformer injections and additional customer connections.
“These projects reaffirm government’s commitment to improving electricity distribution as a driver of industrialisation, socio-economic transformation and improved household incomes,” he said.
Kiiza thanked the Ministry of Energy and Mineral Development, the Ministry of Finance, the UEDCL Board, staff and customers for supporting the company through its first eight months of operation, and wished Ugandans a prosperous 2026.
