KAMPALA, Uganda — The Ministry of Energy and Mineral Development has dismissed Uganda Electricity Distribution Company Limited (UEDCL) Board Chairperson Lydia Ochieng Obbo and placed Managing Director Paul Mwesigwa on forced leave amid concerns over declining institutional performance and rising electricity distribution losses.
In a statement issued on Saturday, Energy Minister Ruth Nankabirwa said the changes are part of a broader review of UEDCL’s management and operations following concerns about the company’s performance since taking over electricity distribution from Umeme Ltd.
“The government has undertaken a review of the management at UEDCL. The services of the chairperson of the Board have been terminated, and the Managing Director has been placed on forced leave to allow for a comprehensive review of UEDCL’s management and operations,” Nankabirwa said.
She added that shareholders have appointed an Interim Board Chairperson, while the Board has named an Acting Managing Director to ensure continuity and stability during the transition period until substantive appointments are made.
Nankabirwa described the shake-up as part of routine governance and oversight measures aimed at strengthening accountability, institutional performance, and service delivery in Uganda’s energy sector.
However, sources within the Energy Ministry indicate that Mwesigwa’s removal is linked to a sharp increase in electricity losses during UEDCL’s first year managing the national distribution network.
According to insiders, electricity losses rose from 15 percent when UEDCL assumed control from Umeme Ltd to nearly 19 percent, significantly above the company’s annual target of 13.65 percent.
A sector performance report dated April 21 shows that by the first quarter of 2026, UEDCL recorded energy losses of 18.11 percent, despite increased national electricity demand, customer growth, and rising monthly energy purchases.
The report indicates that electricity demand grew by 28.5 percent between April 2025 and March 2026, while active customer connections rose by 9 percent from 2.45 million to 2.76 million.
Despite this growth, officials say weak infrastructure, overloaded substations, network breakdowns, and limited government investment in distribution systems have undermined UEDCL’s efficiency.
Sources argue that many of the operational challenges stem from the poor state of infrastructure inherited from the previous distributor, warning that without urgent investment and better planning by both the Ministry and the Electricity Regulatory Authority (ERA), Uganda’s power distribution sector could face a deeper crisis.
Mr Mwesigwa, who had led UEDCL since July 2019, oversaw the company’s transition into full distribution control after Umeme’s exit, but his tenure now ends under mounting pressure over performance and sector stability.
