Uganda’s parliament has approved a government request to borrow $190 million from Stanbic Bank to compensate power distributor Umeme Limited for unrecovered investments as its concession nears expiration, Energy Minister Ruth Nankabirwa announced.
“Parliament has approved our request as @GovUganda to borrow $190 million from Stanbic Bank for the buyout of Umeme,” Nankabirwa posted on social media platform X late Thursday.
Umeme, which holds monopoly rights to distribute electricity in Uganda under a concession that began in 2005, is listed on both the Ugandan and Kenyan stock exchanges. The government previously notified the company that its licence, set to expire at the end of this month, would not be renewed.
Under the concession terms, Uganda is required to compensate Umeme for any capital investments in the power distribution network that have not been recovered by the end of the contract period.
