Umeme Limited, Uganda’s electricity distribution company, has officially declared a dispute with the Government of Uganda over the Buy Out Amount owed to the company under the terms of its concession agreement, prompting the Uganda Securities Exchange (USE) to extend its suspension of Umeme’s trading counter by an additional 30 days.
In a public notice dated April 14, 2025, Umeme announced that, following a resolution by its Board of Directors, it served a Notice of Dispute on April 11 to the Government—represented by the Ministry of Finance, Planning and Economic Development—citing unresolved issues around the Buy Out Amount stipulated in the Support and Concession Agreements.
According to the company, the move is in line with clauses 9.1 and 9.2 of the Support Agreement, which provides for dispute resolution mechanisms. Both parties are now expected to engage in good faith negotiations to resolve the dispute within 30 days, beginning April 11. Should the matter remain unresolved beyond that period—or any extension mutually agreed upon—it will be referred to arbitration in London, as outlined in the concession terms.
In a separate notice also issued on April 14, the Uganda Securities Exchange confirmed that the initial two-week suspension of Umeme’s trading counter, which began on March 31, has been extended for another 30 days. Trading is now expected to resume on Wednesday, May 14, 2025.
The USE stated that the extension is intended to allow the ongoing dispute resolution process between Umeme and the government to proceed without market disruption. During the suspension period, Umeme will remain obligated to fulfill all continuous listing requirements and submit regular progress reports to the Exchange.
Investors have been advised to exercise caution when dealing in Umeme shares and to seek appropriate professional advice during this period of uncertainty.
The announcement comes as Uganda moves closer to the end of Umeme’s electricity distribution concession, which is set to expire in 2025. The Buy Out Amount represents compensation due to Umeme for unrecouped investments in the distribution network, and disagreements over its calculation could impact the broader energy transition strategy.
Both parties have yet to comment publicly beyond the formal notices.