KAMPALA, Uganda | Umeme Limited has announced a dispute with the Government of Uganda over the buyout amount payable following the end of the company’s 20-year electricity distribution concession, setting the stage for possible international arbitration in London.

In a public notice issued today, Umeme announced that it had served a formal Notice of Dispute to the Government of Uganda—represented by the Ministry of Finance, Planning and Economic Development.

” In accordance with clauses 9.1 and 9.2 of the support agreement entered into between Umeme Limited and the Government of Uganda and pursuant to the resolution of its Board of Directors, Umeme has identified and formally declared a dispute in respect of inter alia, the buyout amount payable to the company.” The notice read.

The notice further read that, as stipulated in the dispute resolution clauses of the concession agreement, the parties shall attempt in good faith to settle such a dispute within 30 days commencing from the 11th of April 2025.

According to Umeme, if the agreement is not reached within 30 days or such period as may be agreed upon by the parties, the matter shall be referred to arbitration in London.

Umeme officially handed over the national distribution system to the Uganda Electricity Distribution Company Limited (UEDCL) on March 31, 2025, after the concession ended on February 28.

Energy Minister Ruth Nankabirwa, insisted the matter was closed with the payment of the Auditor General’s recommended amount, US$190 million

Umeme’s latest legal action confirms that the dispute remains far from resolved and could escalate to a legal battle on the international stage.

” This announcement is made under Rule 36 and 38 of the Uganda Securities Exchange Listing Rules, 2025, and Regulation 89(2) of the Capital Markets (Public Offers, Listings and Disclosures) Regulations 2023 of Kenya.” Umeme stated

Umeme furthermore advises the public to exercise utmost caution if and when trading in the shares to seek appropriate advice

On 20 March 2025, Parliament adopted the proposal for the government to borrow over US$190 million from Stanbic Bank, on condition of confirmation of the actual monetary amount of UMEME’s investment by the Auditor General.

Before the revised figure was passed, during the plenary sitting on Thursday, 27 March 2025, Deputy Speaker Thomas Tayebwa urged the government to take into consideration the special audit report when finalising with UMEME.

“This morning, the auditor general submitted a special audit report, verifying and confirming the buyout amount of US$118 million against the approved US$190,” he said.