Umeme Limited has officially declared a dispute with the Government of Uganda concerning the buyout amount payable to the company, triggering a formal resolution process outlined in existing agreements.
In a public notice dated April 14, 2025, Umeme’s Board of Directors announced that the dispute was raised under clauses 9.1 and 9.2 of the Support Agreement between the company and the Government of Uganda.
The matter was formally communicated to the Ministry of Finance, Planning and Economic Development on April 11, 2025.
According to the notice, both parties are expected to resolve the issue in good faith within thirty days, starting from the date the notice was served.
If no agreement is reached within that timeframe or an agreed extension, the dispute will be escalated to arbitration in London.
The Board has urged shareholders, prospective investors, and the public to exercise caution when trading Umeme shares during this period of uncertainty and to seek appropriate professional advice.
The announcement was made under Rule 36 and 38 of the Uganda Securities Exchange Listing Rules, 2025, and Kenya’s Capital Markets regulations.
The matter underscores growing tensions after Umeme exited from the electricity distribution sector following the government’s decision not to renew its concession beyond 2025.
Umeme was replaced by Uganda Electricity Distribution Company Limited (UEDCL)
