Auditor General Approves $118 Million for Umeme Buyout

Kajangu Moses

Category: Politics

Read Time: 1 min

Published: 27 March 2025

The Auditor General, Edward Akol, has given the green light for the Ugandan government to pay $118 million to Umeme as part of its buyout deal.

This development comes after the Ministry of Finance assured Parliament that the government would only consider the Auditor General's figure for the buyout.

Umeme's 20-year concession is set to expire on April 1, and the Uganda Electricity Distribution Company Limited (UEDCL) will take over.

The approval brings an end to the dispute over the buyout figures between the Electricity Regulatory Authority (ERA), the Auditor General, and Umeme.

According to Akol, the approved figure is adequate, considering Umeme's 20-year contract experience.

The Speaker of Parliament appreciated the timely delivery of the report, which avoids additional penalties and loan interest for breaching agreement terms and conditions.

Parliament had previously approved the government's request to borrow $190 million from Stanbic Bank for the Umeme buyout. The loan is expected to be repaid through domestic borrowing.

Kajangu Moses

Kajangu Moses is the Chief News Editor at Salt Media, bringing over 20 years of experience as a journalist. With a wealth of knowledge and a sharp editorial eye, he oversees the newsroom with precision, ensuring accuracy, depth, and timeliness in news reporting. His extensive experience allows him to mentor young journalists while maintaining high journalistic standards. Known for his dedication and leadership, Kajangu plays a crucial role in shaping the news narrative, making sure every story reflects credibility, impact, and relevance to the audience.