One year after the government’s dramatic takeover of electricity distribution from Umeme Limited, the Uganda Electricity Distribution Company Limited (UEDCL) has recorded Shs1.71 trillion in revenue and rolled out an ambitious $994 million grid recovery plan, positioning itself at the center of Uganda’s economic transformation.
The figures are in a statement from the power distributor, which, under the stewardship of Managing Director Paul Mwesigwa, reflects a utility that has weathered early turbulence to deliver a stable financial and operational footing.
The transition dubbed the “Big Switch” was far from smooth, with the first six months plagued by outages, equipment failures, and public skepticism.
UEDCL, however, maintains that these challenges were part of a necessary adjustment period as it took control of an aging network.
“The last 12 months have been an amazing test for UEDCL because of the many power outages and transformer problems that occurred during the first six months of the big switch. But during that time, we had the chance to study the assets, optimize the nation’s outdated and overloaded substations, all of this while making sure the lights remained on,” the company said in its anniversary report.
Management insists that the outages were largely due to inherited infrastructure weaknesses rather than operational failure, noting that the distribution network’s condition, rather than the company’s ability to run the grid, is the primary cause.
Uganda’s electricity sector reforms, spanning over two decades, had earlier split the industry into generation, transmission, and distribution arms, including Uganda Electricity Transmission Company Limited and Uganda Electricity Generation Company Limited. The 2025 takeover from private player UMEME therefore marked a decisive shift back to state control of distribution, significantly expanding UEDCL’s responsibilities.
“This bold decision to give the distribution back to GoU is surrounded by a favorable political, economic, and regulatory environment,” the report notes.
To address systemic weaknesses, UEDCL has unveiled a $994 million investment programme covering the period from 2026 to 2030.
The company describes the plan not merely as a spending framework, but as a long-term transformation strategy aimed at rebuilding the country’s electricity distribution system.
“This programme is a systematic recovery and growth strategy, not only a capital plan, to turn an aging distribution network into a contemporary, dependable, scalable, and smart power distribution system,” the company said.
The investments are designed to expand electricity access, improve reliability, and modernise aging infrastructure. Significant resources are being deployed to connect new customers, while also addressing persistent challenges such as power outages, weak substations, and poor voltage profiles.
The company is targeting the addition of about 300,000 new customers each year, a move expected to bring at least 1.5 million more Ugandans onto the national grid within five years.
Electricity demand is already rising in response to increased access and economic activity.
According to the report, domestic maximum demand increased steadily from 986 MW in April 2025 to 1,188 MW in February 2026, reflecting a 20.4% overall growth.
At the same time, UEDCL has recorded growth in energy purchases and a rapidly expanding customer base, underscoring the growing importance of electricity in Uganda’s industrial and household consumption.
Despite the operational challenges, the company has maintained strong financial discipline.
Revenue to date stands at Shs 1.71 trillion, with full-year revenue expected to reach UGX 2.62 trillion, with margins also expected to improve as efficiencies take hold.
A gross margin of 22% and EBITDA margin of 9% is projected to improve to 10%.”
UEDCL has continued to meet its obligations within the electricity supply chain, including significant payments to Uganda Electricity Transmission Company Limited for bulk power purchases.
The Company paid a total of Shs 1.71 trillion to UETCL within the first 10 months, demonstrating its commitment to maintaining financial discipline.
It has also remained a major contributor to government revenue since, by the end of 2025, UEDCL had remitted a total of UGX 132.5 billion.
In a notable shift, the company has begun tapping external financing to support its expansion programme.
“UEDCL has successfully accessed external financing, a USD 50 million facility from Absa Bank. UEDCL becomes the first GoU agency to directly borrow for investment at a reasonable interest as low as 8%,” the company notes.
Operationally, UEDCL has moved quickly to stabilise the grid through targeted interventions like redeploying transformers from lower-demand areas to overloaded substations in high-growth regions, a strategy that has improved capacity and reduced the risk of outages.
These interventions have already delivered measurable benefits as over 138,000 consumers are benefiting from the relocation program, particularly in high-demand locations like Masaka and Kampala South.
Further upgrades to feeders and protection systems have also improved fault detection and reduced outage durations across key parts of the network, with a total of 18 undertaken with focus on the replacement and installation of auto reclosers, circuit breakers, and associated protection equipment.
However, the company continues to face a major challenge in the form of widespread vandalism of electricity infrastructure.
“What emerges is not a series of isolated incidents, but a recurring pattern of deliberate damage to critical infrastructure. In many instances, sections of the network that have been replaced are vandalized again within a short period,” the company said.
This has created a cycle in which resources are diverted away from long-term investments.
Despite these setbacks, UEDCL remains confident about the future of Uganda’s power sector under government control.
The company says its long-term mission is clear and firmly grounded, dedicated to providing reliable, accountable, and purposeful electricity service to Uganda.
As Uganda pushes toward industrialisation and universal electrification, the success of UEDCL’s reforms will be critical.
The first year after Umeme’s exit has exposed the depth of the challenge, but also the scale of opportunity.
With nearly $1 billion in planned investments and rising demand, the next phase will determine whether the promise of the Big Switch translates into lasting transformation.
