The Ugandan government has revised the loan request for the buyout of electricity distributor UMEME, lowering the amount from the initial $190 million to $118 million. This decision was based on findings in a special audit report, which Parliament reviewed and adopted during a plenary session on March 27, 2025.
The Minister of State for Finance, Planning, and Economic Development (General Duties), Hon. Henry Musasizi, presented the report, which assessed UMEME’s actual investment value before the end of its concession with the Uganda Electricity Distribution Company Limited (UEDCL).
Parliament had earlier approved a plan for the government to secure a $190 million loan from Stanbic Bank to facilitate UMEME’s buyout. However, this was subject to verification by the Auditor General, whose report later confirmed a reduced figure of $118 million.
Deputy Speaker Thomas Tayebwa urged the government to incorporate the audit findings in finalizing the transaction with UMEME, emphasizing that the matter needed to be resolved before the March 31 deadline. “The Auditor General has confirmed the actual buyout figure to be $118 million. We must act swiftly to avoid potential financial penalties,” Tayebwa stated.
The revised buyout figure sparked opposition, with some legislators demanding more time to scrutinize the audit report. Kira Municipality MP, Hon. Ibrahim Ssemujju, questioned the speed at which the report was being adopted, arguing that MPs had not been given the opportunity to review it.
“We have always processed reports through the accountability committees before passing them. Are we now abandoning those procedures?” Ssemujju asked.
Leader of the Opposition, Hon. Joel Ssenyonyi, also voiced concerns that approving the report without further review could undermine Parliament’s role in financial oversight. “Parliament must exercise its appropriation mandate. We should study the report in detail before making a final decision,” he said.
In response, the Deputy Speaker clarified that special audit reports differ from annual reports and do not necessarily require committee review. He stressed the urgency of concluding the UMEME buyout before the contract deadline. “If we delay, UMEME could impose penalties and interest charges, which would be detrimental to the government,” Tayebwa warned.
Hon. Geofrey Ekanya (Tororo North County) supported the move, citing practices in countries such as Kenya, Tanzania, and South Africa, where similar reports are implemented promptly without prolonged parliamentary review.
“This is a time-sensitive matter. The Speaker should apply the relevant rules to ensure we make a decision within the legal framework,” Ekanya said.
With the deadline fast approaching, Parliament’s decision to adopt the special audit report ensures that UMEME’s buyout process moves forward, though concerns over procedural transparency remain among some lawmakers.
