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.
| Metric | 2024 | 2023 | YoY Change |
|---|---|---|---|
| Revenue | 2,314.77 Bn | 2,196.36 Bn | 🟢 ▲ +5.4% |
| Gross Profit | 821.88 Bn | 746.72 Bn | 🟢 ▲ +10.1% |
| Operating Profit/Loss | (578.95 Bn) | 42.21 Bn | 🔴 Worsened |
| Net Profit/Loss | (510.57 Bn) | 11.47 Bn | 🔴 Worsened |
| Credit Losses | 360.91 Bn | 1.60 Bn | 🔴 Worsened |
| Total Assets | 1,388.72 Bn | 2,347.24 Bn | 🔻 -40.8% |
| Equity | 241.48 Bn | 937.38 Bn | 🔻 -74.2% |
| Operating Cash Flow | 424.06 Bn | 582.01 Bn | 🔻 -27.1% |
| Closing Cash Position | (25.27 Bn) | (48.39 Bn) | 🟢 Improved by 48% |
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.
Core Operations Delivered Strong Results
Despite the headline loss, Umeme delivered a solid operational performance. It increased revenue by 5.4% to Ushs 2.31 Trillion, driven by a 10.8% rise in electricity demand and a 14.5% growth in grid connections. Gross profit rose by 10.1% to Ushs 822 Trillion. The company also reduced energy losses to 16.0%—its best level in two decades, down from 38% at the start of the concession.
Umeme generated Ushs 292 Billion in positive operating cash flow, though this was down from Ushs 461 Billion in 2023 due to payment delays and transition-related costs. It invested Ushs 107 Billion in infrastructure and technology upgrades. However, the board opted not to declare a dividend for FY2024, following a Ushs 54.2 per share payout the prior year.
Trading Suspension and Arbitration
On 31 March 2025, both the Nairobi Securities Exchange (NSE) and Uganda Securities Exchange (USE) suspended trading of Umeme shares. The suspension remains in place as the company pursues international arbitration and works to resolve regulatory uncertainties.
Umeme successfully handed over its electricity distribution assets to the Uganda Electricity Distribution Company Ltd (UEDCL) in March 2025. Under the concession terms, the transition period will remain open until the government fully settles the Buyout Amount. The company now concentrates on resolving the dispute and recovering value for shareholders.
With operations concluded, Umeme’s future depends on the arbitration outcome. The case may set a precedent in managing infrastructure exits, regulatory disputes, and investor protection in emerging markets.
