The Ugandan parliament has authorized a $190 million loan to Umeme, a power distributor

The energy minister stated that the Ugandan parliament has authorized the government’s request to borrow $190 million from Stanbic Bank (SBU.UG), create a new tab to reimburse power distributor Umeme Limited (UMEME.UG), and create a new tab for unrecovered investments once its concession expires.

Ruth Nankabirwa posted on social networking site X late Thursday, stating, “Parliament has approved our request as @GovUganda (government) to borrow $190 million from Stanbic Bank for the buyout of Umeme.”

Umeme has monopoly rights to distribute energy in Uganda thanks to a concession that began in 2005, and it is listed on the stock exchanges of both Uganda and Kenya.

The license, which is set to expire at the end of this month, will not be renewed, the company was informed.

However, by the conclusion of the concession period, Umeme would have to pay the government back for any capital investments in the electricity distribution network that the firm has not recouped.