Uganda's UEDCL Seeks $994 Million to Upgrade Electricity Distribution Network

Uganda Electricity Distribution Company Limited (UEDCL) is seeking $994 million in infrastructure investment over the next five years to address growing pressure on the electricity distribution network. The investment plan comes amid mounting scrutiny of the state-owned utility, which assumed responsibility for electricity distribution on April 1, 2025, following the expiry of Umeme's 20-year concession. The transition was expected to improve service delivery and reduce electricity costs.

Instead, consumers have faced persistent and prolonged blackouts, prompting questions about the utility's capacity to manage the national distribution network. The concerns have reached Parliament, where lawmakers have questioned the Energy Ministry and UEDCL over worsening outages and the slow response to customer complaints. In August 2026, the Public Accounts Committee asked the two institutions to explain why electricity reliability had deteriorated despite the change in management.

UEDCL's customer base has grown by approximately 71 percent over five years, from 1.64 million in 2021 to about 2.8 million currently. The expansion has increased electricity demand, placing additional pressure on transformers, distribution lines, and substations, particularly in rapidly growing urban and peri-urban areas. Acting Managing Director Eng. Joselynne R. Rwabwogo said the company was implementing immediate interventions to ease pressure on the network while pursuing longer-term investments.

The company has completed network improvements in Seeta, Bukerere, Kawanda, Mbarara, and Bombo. In Mubende, network reconfiguration reduced recorded outages from 12 in one month to three in the following month. Emergency repairs to underground cables affecting Entebbe, Namasuba, and Kisubi have also been completed. UEDCL said it had connected approximately 80,000 customers over the past two months and is targeting monthly connections of 50,000 by next month.

Equipment shortages have further complicated efforts to restore supply. During the year ending July 2026, UEDCL replaced 1,110 distribution transformers, exceeding its target of 853. Average transformer replacement times also declined from 38 days at the end of June to less than 14 days by the end of August. However, transformer availability remains constrained by rising demand and the limited production capacity of some local manufacturers supplying equipment under the Buy Uganda, Build Uganda (BUBU) framework.

UEDCL is reviewing procurement arrangements and engaging the Public Procurement and Disposal of Public Assets Authority (PPDA) on supplementary sourcing options to improve short-term availability, while supporting domestic manufacturers to expand production. The company is also stepping up preventive maintenance, including vegetation clearance and replacement of ageing equipment, while strengthening measures to curb vandalism and theft of electricity infrastructure.

Reliable electricity is essential to supporting industrial growth, healthcare, agriculture, businesses, and households. As demand continues to increase, UEDCL's responsibility is to strengthen the distribution network while improving the quality of service customers receive. The company's performance carries wider economic implications, particularly for Uganda's Tenfold Growth Strategy, which relies on reliable electricity to drive industrial production, agricultural processing, and business expansion.

Key points

• UEDCL seeks $994 million to upgrade its electricity distribution network and end frequent power outages.