Umeme Limited was the largest energy distributor in Uganda, distributing about 97 percent of all electricity used in the country. The shares of the stock of the company are listed on the Uganda Securities Exchange (USE) and are cross listed on the Nairobi Stock Exchange (NSE). As of December 2023, the company's total assets were approximately UGX:2.347 trillion (US$619.18 million), with shareholders' equity of approximately UGX:937.381 billion (US$247.27 million).
Location The registered offices of the company are located at Rwenzori House, 1 Lugogo Avenue, in the central business district of Kampala, the capital and largest city of Uganda.
Formation
Umeme was formed in 2004 when the government of Uganda leased the Uganda Electricity Distribution Company Limited to a consortium belonging to Globeleq (56 percent), a subsidiary of the Commonwealth Development Corporation of the United Kingdom, and Eskom of South Africa (44 percent). The transfer of assets did not take place until 1 March 2005. During 2006, the consortium formed by Globeleq and Eskom was restructured, with Globeleq becoming the sole owner of Umeme.
On 15 October 2012, Umeme became a listed company on the Uganda Securities Exchange (USE). A total of 622,378,000 shares, representing approximately 38 percent of its issued share capital at the time, became listed on the Ugandan bourse in an initial public offering (IPO). The shares of the company started trading on the USE on 30 November 2012. Umeme shares were first cross-listed on the NSE on 14 December 2012, with active trading commencing on 31 July 2013. The company expected to use the proceeds from the IPO, estimated at UGX:171 billion, to expand its power distribution network and payoff debt.
Ownership As of December 2021, the ten largest shareholders in the stock of the company were as illustrated in the table below: As of December 2017, the company shares were held by institutional investors (72 percent) and retail investors (28 percent).
Governance Umeme is governed by a ten-person board of directors. They were re-elected at the 9th Annual General Meeting held on 6 May 2021, and they include the following people:
Management structure Umeme is structured into twelve management departments, each headed by a senior manager. The senior managers form the executive committee, whose members were the following as of 1 June 2018:
Under the executive committee, Umeme has 25 other managers who assist the executives to implement company policy and run the company on a daily basis. In March 2015, Selestino Babungi was appointed managing director, replacing Charles Chapman who served in that role from February 2009 until March 2015.
Unreliability of service
Within Uganda, Umeme is known for chronic unreliability and has been accused of corruption. Customers frequently face extended service outages, which are occasionally followed by protests, riots, and assaults on Umeme employees.
Protests and rioting In 2010, protests erupted after a two-week power blackout in the town of Bugembe. Attempts to disperse the protesters led to violent clashes between police and irate residents. Nine were arrested, with eight being charged with inciting violence, staging an unlawful and violent assembly, and insulting the police. In 2011, a two-month power outage led to protests in Jinja. Residents and business owners built barricades, set tires ablaze, and blocked traffic. Police responded with tear gas and live ammunition. Days later, over 100 people were dispersed by riot police using tear gas and rubber bullets after marching on Umeme's offices in protest of recurring outages in Masaka town. In 2012, after a month-long outage along the Kampala–Gayaza Road, stone-throwing protesters caused property damage and injuries. In 2014, a Umeme manager in Mubende was beaten severely by an infuriated mob during power-related protests at the Kasambya trading centre. The ensuing battle between rioters and security forces resulted in 15 arrests and one other injury, including a trader who was shot twice. Later that year, Kampala print and publishing shop owners went on strike, blocked Nasser road, and burnt paper and plastic to protest six-day power cuts along the road. Security forces used tear gas to disperse the protesters. In November 2018, hundreds of people demonstrated in front of Umeme's office in Gulu Town in north Uganda. Many people involved in business were complaining that the frequent power outages raise their costs and prevent them from properly managing their ventures. The crowd was joined by MPs supportive of the protesters. Although the demonstration was peaceful, security forces fired teargas to stop it. One person was shot in the buttock.
Recommendations by parliament In 2013, a probe committee of Uganda's Parliament recommended cancellation of Umeme's contract due to its chronic failure to provide reliable services, which would trigger a contract severance payment of at least US$148 million. The following year, Uganda's Parliament recommended that Umeme's "contract should be terminated” due to the gross manipulations encountered in the procurement of the Umeme concession, and the scandalous provisions of the power distribution agreements signed between the government of Uganda and Umeme. Ultimately, this course of action was decided against because it would have been too expensive and politically complicated.
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