Umeme’s FY2024 Loss Marks Turbulent End to 20-Year Electricity Concession

PHOTO: Umeme

Umeme Limited closed FY2024 with a Ushs 511 Billion net loss, reversing a Ushs 11 million profit from the previous year. The loss coincided with the end of its 20-year electricity distribution concession in Uganda, which officially expired on 31 March 2025. 

The company recorded a Ushs 699 billion impairment charge as it accelerated amortization of intangible assets to comply with IFRS requirements. It also recognized Ushs 361 billion in expected credit losses tied to the disputed Buyout Amount from the Government of Uganda. While the government has already paid USD 118 Million, Umeme is pursuing an additional USD 292 Million (about Ushs 1.05 Trillion) through international arbitration in London.

Regulators granted Umeme a reporting extension to 12 June 2025 to accommodate complex reconciliation linked to the concession exit. The unresolved Buyout Amount materially weakened its balance sheet. Equity fell 74% to Ushs 241 Billion, and total assets dropped 41% to Ushs 1.39 Trillion.

By Harry Njuguna
Full story at Kenyan Wall Street.