UEDCL board chairperson sacked, MD sent on forced leave

KAMPALA - Energy (MEMD) minister Ruth Nankabirwa has sacked Uganda Electricity Distribution Company Ltd (UEDCL) board chairperson Lydia Ochieng Obbo. 

She has also sent the utilities managing director, Paul Mwesigye, on forced leave, New Vision Online has learnt.

Sources at the MEMD confirmed the development and said the decision was allegedly taken on the directive of President Yoweri Museveni.

Dr Patricia Litho, the MEMD spokesperson, on Saturday (May 2, 2026) said they would issue a detailed statement about the matter.

“I can not comment now, but a statement will be released,” she said.

However, sources privy to the sackings told the New Vision Online that action on the duo was taken following concerted efforts at the ministry to have changes effected at the UEDCL.

Minister declines Nabbanja directive to stop UEDCL probe

In December last year, Nankabirwa declined a directive by Prime Minister Robinah Nabbanja to halt an ongoing investigation by the board of the UEDCL.

In her letter dated Tuesday, December 9, 2025, and in response to Nabbanja’s letter dated December 3, 2025, Nankabirwa confirmed she had directed the board to investigate UEDCL top management and compile a comprehensive board report and implementation plan, which she said would address the identified lapses that had been raised by the Electricity Regulatory Authority in their report.

“My ministry is now awaiting the report of the board of UEDCL on their inquiry and findings, which will inform further decisions and action,” Nankabirwa stated.

In her letter to the Prime Minister, the Minister said, “I refer to your letter dated December 3, 2025, on the process of planned termination of UEDCL senior management staff.

In the letter, you directed that the board of UEDCL halt all processes it is undertaking or intends to undertake related to the planned ‘massive’ termination of UEDCL Senior Management Team (SMT); and require the Ministry to furnish you with a copy of the ERA report on UEDCL performance for the past six months".

The minister informed Nabbanja, “my ministry, in accordance with Cabinet Minute 351 (CT 2022), did not renew the Concession and Privatisation agreement of Umeme Limited. As of April 1, 2025, the UEDCL assumed full responsibility for operating the country’s electricity distribution network, following transfer from Umeme. The transfers aimed to strengthen the reliability, transparency and efficiency of electricity supply for all Ugandans.”

Nankabirwa said a comprehensive assessment of UEDCL performance over the last eight months conducted by ERA, had identified significant operational and managerial gaps within the company.

“These gaps have negatively affected service delivery and include; a decline in electricity reliability, reflected in frequent outages, voltage fluctuations and slow restoration supply; delayed integration of mandatory ICT systems and reliance on smaller platforms that undermine credibility; prolonged delays in the processing and completion of new connections; Procurement gaps, culminating in delays in acquisition of essential repair maintenance, and operational materials leading to slow execution of approved upgrade, expansion and restoration of the network; Human resource governance issues that have weakened staff effectiveness and contributed to non-responsiveness to customer needs,” Nankabirwa wrote.

The minister said, “in the interest of ensuring the continuity and reliability of the electric supply industry and in accordance with my obligations under the Electricity Act, Chapter 157, I raised the concerns identified and issued instructions to the Board of UEDCL.”

“The Board was required to conduct a board-led inquiry and compile a comprehensive board report and implementation plan to address the identified lapses, considering the associated risks to system security system, safety, revenue integrity and sustainability of the electricity supply industry. My ministry is now awaiting the report of the board of UEDCL on their inquiry and findings, which will inform further decisions and action,” Nankabirwa added.

Nabbanja’s letter

Nabbanja had in her letter halted the alleged sacking of UEDCL SMT, which she said was as a result of the directive of the minister and also blocked attempts by the minister to bring on board private players to manage Uganda’s electricity saying the decision must first be discussed by the whole government in cabinet with adequate guidance from President Yoweri Museveni after this heightened political season.

Nabbanja instead directed the Minister to support the current UEDCL team, 'stabilise the network which I am told was left in a sorry operational state by UMEME.

“I have been informed that you directed the UEDCL board to review and thereafter cause massive terminations of the UEDCL Senior Management Team (SMT), following an ERA confidential performance review report covering last six months following the takeover UEDCL of UMEME service.

Nabbanja said the Minister’s instructions to the board raised the following concerns:
The probable unintended consequences of such uncoordinated and massive termination at this critical time, with lessons learnt from UMEME, your proposed re-introduction of private power suppliers in form of joint ventures, need to be well structured, studied and discussed by the whole government in cabinet with adequate guidance from H.E the President after this heightened political season.

“I am informed that, the recent transition from UMEME to UEDCL pooled together up to 2,712 permanent and 1,760 temporary staff, who are now undergoing training and getting support and supervision under the UEDCL SMT.  Your proposed massive termination of the SMT will significantly cause unnecessary destabilisation in the general UEDCL workforce, increase power outages and adversely affect the Industrial sector in addition to other programs and Government image,” she said.

She also said, “We need to make all efforts to ensure a stable power supply to the industries and Ugandans at large, since I am informed that most of the procured Network materials are now in transit. Support your SMT to complete the massive connections and complete the ongoing network upgrades, so that steady power supply is assured.”

She then directed the minister to: Suspend all plans that are aimed at reintroducing private partnership/Joint Ventures in the power distribution sector until Rationalisation of Agencies and Public Expenditure policy (RAPEX) is concluded; Wait until the end of this election period for further guidance from Cabinet and H.E the President on this matter. In the meantime, please furnish me with a copy of the ERA confidential performance review report that you have relied on.

“The board is instructed to halt all the processes that it is undertaking, or it intends to undertake in connection with this matter. In the meantime, support the current UEDCL SMT, to stabilise the network, which I am told was left in a sorry operational state by UMEME. By copy of this letter, the UEDCL board Chairperson and members should take note of my directives,” Nabbanja stated.

However, Nankabirwa in her letter also offered clarification regarding what she called, ‘misleading information’ in Nabbanja’s letter and acknowledged that, whereas there is an ongoing board led inquiry, the ministry had not, “called for massive termination of the senior management team of UEDCL but rather called for the board intervention to prevent further deterioration in service delivery and stabilise the company operations and the suspension of specified officers pending full investigations and administratively review by the board.”

She also clarified that the ministry had not, “implemented any plans aimed at reintroducing private partnerships/joint ventures in the power distribution sector. The Ministry therefore remains cognizant and will ensure that in implementing Minute 351 (CT 200) of the cabinet held on October 3, 2022, which requires UEDCL the Government entity as the majority shareholder under the Public Private Partnership (PPP) arrangement cabinet shall be kept fully updated of changes that may be relevant to the sector regarding the implementation of the cabinet directive and Rationalisation of Agencies and Public Expenditure (RAPEX) thereof,” Nankabirwa stated.

Fight for power deal 

Umeme’s 20-year electricity distribution concession in Uganda officially ended on March 31 this year, following the Government of Uganda’s decision not to renew the deal.

However, sources at UEDCL told New Vision that bigwigs were allegedly fighting to introduce a new investor to manage the lucrative electricity distribution network.

“It’s a lucrative sector, and everybody wants to have a share of it. They have now even reached an extent of frustrating UEDCL operations by triggering panic and job unrest to create a situation where we are labelled failures,” the source said.

Last month, a controversial internal memo from top management shared with staff claimed UEDCL was unable to manage the entire network and was, henceforth, engaging the energy ministry to explore the possibility of an investor and what they termed the PPP arrangement.

Sources noted that up to five companies, said to be fronted by about four current and former ministers plus other shady figures, were eyeing the lucrative deal. Two of the companies allegedly flew out sections of stakeholders for an all-expenses-paid trip to Dubai to lobby for consideration.