The Uganda Electricity Distribution Company Limited is under government investigation over persistent delays in electricity connections and service delivery challenges, even as the utility reports a sharp rise in revenues for the latest financial year.
The concerns were raised by the Minister of Energy and Mineral Development, Ruth Nankabirwa, following the company’s first Annual General Meeting and board session, where officials presented strong financial results alongside operational shortcomings.
The meeting reviewed the company’s performance for the 2024/2025 financial year ending June 30, 2025, with revenue collections rising from about Shs 111 billion to approximately Shs 669.5 billion.
Officials attributed the growth to an expanded distribution network and improved revenue collection systems.
However, Nankabirwa said the financial gains were being undermined by continued inefficiencies, particularly delays in new electricity connections and procurement bottlenecks affecting equipment availability.
“We have identified gaps in access and service delivery. Some of the challenges are linked to procurement processes and supplier delays, which have slowed response times,” she said.
She directed that a formal inquiry be undertaken into the company’s leadership and operations, alongside a broader restructuring of internal systems aimed at improving efficiency.
“We want to reorganise and place people where they fit best so that performance improves. In the next 30 to 100 days, we expect to see better results,” she added.
Nankabirwa confirmed that the Managing Director had been sent on leave as part of the ongoing inquiry, while an acting Managing Director has been appointed to ensure continuity of operations.
“There is no leadership vacuum. The board chair is experienced, and the acting Managing Director is well versed with the system. Operations will continue as investigations proceed,” she said.
She urged staff not to panic, emphasising that the inquiry was aimed at improving performance rather than disrupting service delivery.
“Unless you are guilty, there is no reason to panic. If anyone has issues, they should come forward. We shall deal with them according to the law,” she said.
The minister also cited ongoing power outages and customer service inefficiencies, warning that prolonged disruptions were unacceptable given electricity’s central role in industry, health care and economic activity.
“Electricity is critical. We cannot wait for years to fix these problems while industries and hospitals suffer,” she said.
She further noted that the company has a tax obligation of about Shs 38 billion, dismissing suggestions that any relief had been granted.
According to the Ministry of Energy and Mineral Development, the inquiry will focus on management systems, procurement processes and overall service delivery as government moves to stabilise and improve electricity distribution nationwide.
