Kampala, Uganda – Sources within Uganda’s Ministry of Energy and Mineral Development have confirmed that significant changes have taken place at the Uganda Electricity Distribution Company Limited (UEDCL), with board chairperson Lydia Ochieng-Obbo terminated and Managing Director Paul Mwesigwa sent on forced leave.
Ministry sources acknowledged the shake-up but declined to provide full details or the exact reasons behind the decisions. One official stated that further facts were being gathered ahead of an official statement expected soon. “True, we are waiting for facts so that we can put out a statement tomorrow. The Board chair was terminated, and the MD was sent on forced leave,” the source said.
Background and Context
UEDCL, the state-owned entity responsible for electricity distribution, took over operations from the private concessionaire Umeme Limited on April 1, 2025, ending a 20-year concession. The transition returned control of Uganda’s national electricity distribution network to government hands, significantly expanding UEDCL’s scale. The company’s revenues jumped dramatically, from around Shs 200 billion pre-takeover to Shs 2.5 trillion annually.
Under Mwesigwa’s leadership (appointed MD in 2019 and substantive CEO during the handover), UEDCL reported notable progress by early 2026. This included generating UGX 1.71 trillion in revenue by February 2026, expanding the customer base to approximately 2.43 million, adding over 640,000 new connections, and rolling out a $994 million grid recovery and modernization plan for 2026–2030. The company also outlined ambitions to clear connection backlogs and invest in transformers, meters, and infrastructure upgrades.
However, the transition has been turbulent. UEDCL inherited an ageing network plagued by issues such as overloaded substations, deteriorating poles, and failing transformers. The company identified needs for major upgrades, including thousands of transformers and poles. Persistent power outages have drawn public criticism, amid debates over technical losses, investment shortfalls, and procurement challenges.
Tensions with Ministry and Regulator
The latest changes follow months of friction. In December 2025, the Ministry of Energy directed the UEDCL board to investigate top management over performance and conduct concerns flagged in a confidential Electricity Regulatory Authority (ERA) assessment. Prime Minister Robinah Nabbanja had previously intervened to halt proposed mass terminations by Energy Minister Ruth Nankabirwa, urging a more measured, evidence-based approach to avoid disrupting the sector.
Analysts and commentators, including The Independent’s Andrew Mwenda, highlighted risks of political interference in lucrative procurement deals (e.g., for transformers, meters, and conductors) under the “Buy Uganda, Build Uganda” policy. Earlier reports noted efforts to favor local suppliers and push back against middlemen, alongside broader debates about potentially reintroducing private participation in distribution.
Lydia Ochieng-Obbo, a lawyer with experience in corporate governance, microfinance, and agribusiness initiatives, had served as board chairperson. She publicly commented on financing deals, such as a Shs 195 billion facility from Absa Bank in late 2025, to support network investments.
Ongoing Challenges and Implications
The shake-up occurs as UEDCL navigates structural pressures: inherited infrastructure deficits (estimated at around $85 million in some earlier claims), regulatory scrutiny from ERA, and public expectations for reliable power. Tensions between the distributor, regulator, and ministry have included accusations over investment approvals and network performance.
The Ministry of Energy is expected to issue an official statement clarifying the changes, their scope, and any interim leadership arrangements. As of recent website data, Ochieng-Obbo and Mwesigwa were still listed in their roles, indicating the announcements are very recent.
This development underscores the high stakes in Uganda’s power sector, where control of distribution assets involves billions in revenue, procurement, and infrastructure investment critical to national development. Further details on replacements, specific allegations, or policy shifts are awaited.
