Kampala, Uganda: The government has moved to shake up leadership at Uganda Electricity Distribution Company Limited (UEDCL), terminating Board Chairperson Lydia Ochieng-Obbo and sending Managing Director Paul Mwesigwa on forced leave in what officials describe as “governance measures” to restore performance and accountability.
Energy Minister Ruth Nankabirwa said the decision followed a review of the company’s management and operations, adding that interim leadership has been installed to stabilise the utility during the transition. Stella-Marie Biwaga Cingtho has been appointed Acting Managing Director, while a new interim board chairperson has also taken office.
The intervention comes barely a year after UEDCL took over electricity distribution from Umeme Limited following the expiry of its 20-year concession in March 2025.
Energy Losses and Performance Concerns
Sources within the Energy Ministry indicate that rising electricity losses and operational inefficiencies played a central role in the decision to sideline the top leadership.
Energy losses are reported to have increased from about 15 percent at the time of transition from Umeme to nearly 19 percent under UEDCL’s management—well above the sector target of 13.65 percent.
A recent performance report shows that UEDCL closed the first quarter of 2026 with losses at 18.11 percent, raising concerns about grid efficiency and revenue leakage in the distribution sub-sector.
Despite growing electricity demand, from 986.4MW to 1,217.7MW between April 2025 and March 2026, and an increase in customer connections to over 2.7 million, the utility has struggled to contain technical and commercial losses.
Infrastructure Strain and System Challenges
Insiders point to deeper structural issues, including ageing infrastructure inherited from Umeme, overloaded substations, and frequent system breakdowns.
“The network is overstretched, substations are overloaded, and there is frequent tripping. Without investment, losses are inevitable,” a source noted.
The concerns suggest that beyond management challenges, the sector may be grappling with underinvestment and planning gaps involving key regulators such as the Electricity Regulatory Authority (ERA).
Government Moves to Stabilise Sector
The Ministry maintains that the changes are part of routine oversight to strengthen institutional performance and ensure uninterrupted electricity supply.
Prime Minister Robinah Nabbanja had previously been linked to internal disagreements over proposed management changes, reflecting the high-level sensitivity surrounding UEDCL’s operations.
The government has assured the public that power distribution services will continue without disruption as investigations and management reviews proceed.
Given UEDCL’s strategic role in Uganda’s electricity value chain, the shake-up signals growing pressure on the utility to deliver efficiency, reduce losses, and sustain service reliability in a rapidly expanding energy market.
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