Uganda: UETCL faces 136 lawsuits and a potential liability of 777 billion shillings

Uganda Electricity Transmission Company Limited (UETCL) is facing 136 legal proceedings representing a potential liability of 777 billion Ugandan shillings, or approximately 210 million dollars at the current exchange rate, according to data presented on Thursday, September 3, 2026, before the parliamentary COSASE committee. According to Africa Newsroom (APO), most of the disputes stem from payment delays to project-affected persons (PAPs), amounting to 22 billion shillings, and a 30 billion debt owed to a substation in Tororo district. More than 500 billion shillings of the total liability stems from a lawsuit filed by Umeme Limited, the former distribution concessionaire until March 2025, currently pending before a London court. COSASE Chairperson Hon. Muwada Nkunyingi pointed out weaknesses in land acquisition and contract management. "We asked who was awarding the contracts and whether a single person decided on the awardee," he stated, citing suspicions of collusion raised by the Auditor General and clauses imposing certain settlements outside Ugandan courts. MP Hon. Julius Nakiyi questioned the effectiveness of UETCL's legal department. Company Secretary Stella Ladona explained that some PAPs reject the compensation set by the Chief Government Valuer. Managing Director Eng. Richard Matsiko indicated that UETCL can now compensate around 8,000 PAPs linked to the 400 kV Karuma-Tororo line: "Those who accept will be paid in six months." This litigation liability weakens the public operator's finances and could weigh on tariffs and the reliability of the national grid. It illustrates the tensions inherited from the partial liberalization of Uganda's electricity sector, between the break with Umeme and debt linked to major hydroelectric projects.