Umeme Limited has announced the exit of four members from its Board of Directors, following the natural conclusion of its electricity distribution concession, as communicated during the company’s Annual General Meeting held on July 18, 2025.
In a notice on Friday, August 22, Umeme Limited announced that the departing directors are Gerald Ssendaula, Florence Namatta Mawejje, Dr. Eng. Silver Mugisha, and Johan de Bruijn.
Umeme Limited expressed gratitude for its service and contributions to the growth and governance of Uganda’s largest electricity distributor.
Gerald Ssendaula, who joined the Board in 2013, was commended for his leadership and sector experience.
“The Company would like to thank Hon. Ssendaula for his exemplary and dedicated service to Umeme and in particular to the Board of Directors,” the statement read, noting that he chaired the Customer Service and Loss Reduction Committee during his tenure.
Umeme Limited Directors Mawejje, Mugisha, and de Bruijn resign
Florence Namatta Mawejje, a Board member since 2016, was also recognized for her extensive executive experience across various sectors. Mawejje served on Umeme’s Board since 2016 and also served on three Board committees.
Dr. Eng. Silver Mugisha, who was appointed in 2024, and Johan de Bruijn, who joined the Board in 2020, were similarly acknowledged for their expertise in public utility management and emerging markets investment, respectively.
Umeme emphasized its appreciation for all four directors, citing “their unwavering and exceptional service to Umeme, the electricity sector and Uganda as a whole.”
Also Read: Stanbic Bank Announces Leadership Changes
The changes come as the company navigates its transition following the expiry of its 20-year electricity distribution concession in Uganda, which officially expired on March 31, 2025.
In its Financial Year 2024 results, Umeme Limited reported a Ush511 billion net loss, a sharp reversal from the Ush11 million profit recorded the previous year. The loss was largely driven by a Ush699 billion impairment charge as the company accelerated amortization of intangible assets to align with international financial reporting standards (IFRS).
Additionally, Umeme recognized Ush361 billion in expected credit losses, tied to the disputed Buyout Amount from the Government of Uganda.
Although the government has already disbursed $118 million, Umeme is pursuing an additional $292 million (approximately Ush1.05 trillion) through international arbitration in London.
Due to the complexity of reconciling concession-related financials, regulators granted Umeme an extension until 12 June 2025 to release its full-year results. The unresolved Buyout Amount has materially impacted the company’s balance sheet, with equity falling by 74% to Ush241 billion, and total assets declining by 41% to Ush1.39 trillion.
FY 2024 results
Despite the headline loss, Umeme delivered a solid operational performance. The company increased revenue by 5.4% to Ush2.31 trillion, bolstered by a 10.8% growth in electricity demand and 14.5% growth in grid connections.
Gross profit rose by 10.1% to Ush822 billion. Notably, Umeme reduced energy losses to 16.0%, its best performance in two decades—down from 38% at the start of the concession in 2005.
Also Read: New Fuel Prices, D.T. Dobie Shuts Down, KPC Sale Stopped and Billions Made by Banks
Umeme also reported Ush292 billion in positive operating cash flow, though this figure declined from Ush461 billion in 2023 due to delayed government payments and increased transition costs.
The company invested Ush107 billion in infrastructure and technology upgrades during the year. However, in light of its financial position, the board opted not to declare a dividend for FY2024, a contrast to the Ush54.2 per share payout made the previous year.
Trading of Umeme shares on both the Nairobi Securities Exchange (NSE) and Uganda Securities Exchange (USE) was suspended on 31 March 2025. While the suspension was initially expected to end on 11 April, it was extended several times amid unresolved negotiations over the Buyout Amount. Trading finally resumed on 13 June 2025, following the release of Umeme’s audited results.
In March 2025, Umeme successfully handed over its electricity distribution assets to the Uganda Electricity Distribution Company Ltd (UEDCL). As per the concession agreement, the transition period remains open until the government fully settles the Buyout Amount.
In the meantime, Umeme’s focus has shifted to resolving the dispute and recovering value for shareholders, with arbitration proceedings now underway in London. With its operational role concluded, Umeme’s future now hinges on the arbitration outcome
Follow our WhatsApp Channel and join our WhatsApp Group for real-time news updates.
