Business 5 May 2026 Daily Monitor (Uganda)
Power Struggles and Tender Fights Lead to UEDCL Leadership Shakeup
The Managing Director and board chair of Uganda Electricity Distribution Company Ltd (UEDCL) have been ousted amid internal clashes, procurement delays, and disputes over lucrative contracts following the takeover from Umeme. Electricity losses have risen, exacerbating network challenges inherited from the previous operator. Source: https://www.monitor.co.ug/uganda/news/national/the-untold-battle-power-struggles-and-fight-over-deals-at-uedcl-5447290
Leadership Ousted at UEDCL
Paul Mwesigwa, who served as UEDCL Managing Director for one year, was sent on forced leave by Energy Minister Ruth Nankabirwa on April 29, 2026. The directive cited rising electricity losses from 15% to 19% after UEDCL took over the distribution network from Umeme on April 1, 2025. Board chair Ms Ochieng was also terminated, with Joselynne Rwaboogo Rwakakooko appointed acting MD and Stella-Marie Biwaga Cingtho as interim board chair.
Inherited Network Defects
UEDCL reported inheriting a faulty system from Umeme, including 113 defective transformers in Kampala and 63 nationwide, plus issues at key substations causing frequent outages. The company estimated $85 million in defects and $60 million for urgent repairs. Despite securing funds like a $50 million loan from Absa Bank and tariff approvals totaling $57 million, procurement delays hampered progress.
Clashes Over Tenders and Directives
Insiders point to tensions between UEDCL management and Ministry of Energy officials over high-value contracts for transformers and substations. Sources claim presidential directives favored local firms, but Mwesigwa pushed for strict procurement compliance. Only $49 million was approved against a $190 million capital need from April to December 2025, amid slow processes involving PPDA and the Solicitor General.
Broader Context and Criticism
The transition involved absorbing 2,600 Umeme staff into UEDCL’s 500-employee base, creating cultural clashes. Critics highlight ERA’s reports on outages, material shortages, and safety risks, while UEDCL questions the regulator’s overreach. Past sector scandals at UEGCL and UETCL saw limited accountability. Reports suggest further managerial exits may follow, with Counter Terrorism police deployed at UEDCL offices.
Ministry statements frame the changes as routine governance improvements. The Ministry of Energy urged patience in October 2025, blaming Umeme’s legacy issues.
Source: Daily Monitor (Uganda)