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Umeme Profit Warning After 20-Year Revenue Stream Switched Off

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Umeme Ltd profit warning
Umeme Ltd is still pursuing outstanding compensation claims.
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Umeme Ltd has warned investors that it is likely to record a second consecutive loss for the six months ended 30th June 202. This will be its first full half-year without electricity-distribution revenue after operations ended when Uganda’s 20-year concession expired on 31st March 2025 and the network was returned to the government.

Umeme Ltd is still pursuing outstanding compensation claims. “The Board of Directors of Umeme Limited (wishes to inform its shareholders, prospective investors and the general public that, based on an assessment of the Company’s financial performance for the half year ended 30th June 2026, the Company will most likely register a consecutive loss, following the registration of a loss for the financial year ended 31st December 2025,” the company said in a filing at the Nairobi Securities Exchange (NSE).

The assessment is based on the fact that Umeme Ltd ceased to generate revenue following the handover of the electricity distribution system to the Government of Uganda at the natural end of the 20-year electricity distribution concession in Uganda on 31st March 2025, it said.

Umeme Ltd board said it continues to actively pursue its outstanding claims against the Government of Uganda through the ongoing dispute resolution process as stipulated in the Privatization Agreements.

“We will keep shareholders and stakeholders informed of any material developments in this respect,” the statement said.  “Further details of the company’s performance and the basis thereof will be disclosed in the Interim Financial Statements for the six months ended 30th June 2026 to be published in due course.”

Umeme Ltd was Uganda’s primary private electricity distribution company, which handled about 97% of the nation’s power retail and distribution. Its 20-year exclusive concession officially ended on March 31, 2025, after which the government transitioned power distribution back to the state-owned Uganda Electricity Distribution Company Limited.

See Also >> Limuru Tea Issues Profit Drop Alert to Shareholders
Written by
BT Correspondent

editor [at] businesstoday.co.ke

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