Uganda’s parliament has approved a government request to secure a $190 million loan from Stanbic Bank to compensate power distributor Umeme Limited for unrecovered investments as its concession nears expiration.
Energy Minister Ruth Nankabirwa confirmed the approval in a social media post on Thursday night, stating that the government would proceed with the buyout as required under the concession terms.
Umeme, which has held exclusive rights to distribute electricity in Uganda since 2005, operates under a contract set to expire at the end of this month. The company, listed on both the Ugandan and Kenyan stock exchanges, was previously informed that its licence would not be renewed.
Under the terms of the agreement, the Ugandan government is obligated to reimburse Umeme for any outstanding capital investments in the electricity distribution network that have not been recovered before the concession ends.
