The Ministry of Finance is seeking approval for a loan of over USD 190 million from Stanbic Bank to facilitate the UMEME buyout, just days before the expiration of the power distribution company's concession on February 28, 2025.

While the government emphasizes the need for a smooth transition of UMEME's operations to the Uganda Electricity Distribution Company Limited (UEDCL), concerns have been raised by some stakeholders regarding the urgency and timing of the budget approval.

In a joint National Economic Committee meeting held at Parliament today, the Ministry of Finance seeks for the approvement of a total of over USD 190 Million funding from Stanbic Bank for the UMEME asset buyout to immediately secure the company after the expiry of the concession on the 28th February 2025.

The Ministry requests that the National Economy Committee considers the loan payment.


According to the state Minister for Energy, Hon. Sidronius Opolot Okaasa, the loan payment is meant to enable UMEME run the government's assets by paying for the investments made  by the company before officially handing over to Uganda Electricity Distribution Company Limited (UEDCL).


However, some members from the committee were displeased with the untimely budget that the Minister of Finance proposed in which the loan payment is supposed to be paid citing that it should be paid in a short period of time as UMEME's concession ends.

According to committee members, the funding puts the country in a precarious situation.


Hon. Sidronius Opolot went ahead to explain the viability of UMEME stating that there that there is no loss of assets made as it seeks the USD 190 million funding.


This comes after UMEME's 20 year concession with the government soon comes to an end on February 28^th 2025 and hands over 31^st March,2025 with other several binding concession agreements.