A 30-day extension of Umeme Limited’s suspension from trading on the Uganda Securities Exchange (USE) after the expiry of its electricity distribution agreement last month is weighing heavily on investors as attention shifts to the utility’s ability to secure a financial compromise with the Ugandan government over a disputed payout figure in less than a month.
Umeme’s 20-year power distribution agreement came to an end on March 31, 2025, in light of the government’s decision not to renew the concession deal - a development that paved the way for the reacquisition of major power distribution assets by Uganda Electricity Distribution Company Ltd (UEDCL) from Umeme.
