Nearly 200 to Lose Jobs as Umeme-UEDCL Transition Advances

Minister Ruth Nankabirwa said the government was unable to absorb all Umeme staff due to concerns over redundancy.

A total of 191 employees are set to lose their jobs as Uganda Electricity Distribution Company Limited (UEDCL) takes over electricity distribution from UMEME, the Minister of Energy and Mineral Development, Ruth Nankabirwa, confirmed.

Speaking during the orientation retreat for new members of the Parliamentary Committee on Environment and Natural Resources at Speke Resort Munyonyo, Nankabirwa explained that the government was unable to absorb all Umeme staff due to concerns over redundancy.

“Unfortunately, we cannot simply absorb all the staff, especially since UEDCL already has personnel from the successor company," the minister said.

"Doing so would result in redundancy in some offices, leaving employees without work while increasing operational costs, which would ultimately impact electricity supply."

The Minister reassured affected employees that they would be prioritised for re-employment in other roles within the electricity sector.

"There are 191 of them, and we will retain them as specialists so that when the need arises, we can call on them. We can also recommend them to contractors working within the network to give them first priority,” she added.

The transition comes after the government announced three years ago that UMEME's 20-year concession would not be renewed.

"Those who have been working with Umeme should not be surprised. The roadmap was shown, and we have done our best to retain as many as possible. We have recruited 90% of former staff into the new system, but some positions have become redundant due to the need to eliminate duplication," Nankabirwa said.

Umeme will exit by the end of March 2025, and UEDCL will fully take over electricity distribution across Uganda.

The government aims to improve efficiency, reduce power losses, and lower operational costs to ensure affordable electricity tariffs for consumers.

Officials are also working to upgrade the power distribution infrastructure, tackle vandalism, and expand rural electrification under the new public-led model.

While the transition is seen as a necessary step towards greater government control of electricity supply, stakeholders have raised concerns about its impact on service delivery, particularly as UEDCL restructures its workforce.

There are calls for a smooth handover process to avoid disruptions in power distribution.

As the transition progresses, the Ministry of Energy has pledged to closely monitor the process and provide the necessary support to both affected employees and consumers, ensuring a seamless shift from Umeme to UEDCL.