USE extends Umeme trading suspension

KAMPALA - The Uganda Securities Exchange (USE) has extended the suspension of Umeme shares from trading until June 12 as the company continues to dispute a compensation claim with the government.

The extension follows Umeme’s June 2 notice saying talks with the government over a $292m compensation claim had failed to reach an agreement. The 20-year Umeme concession for electricity distribution ended after February 28 2025.

On March 31, 2025, Uganda Electricity Distribution Company Limited (UEDCL) officially took over the electricity distribution network from Umeme.

The government has already paid $118m. By close of trading on March 28, Umeme was trading at sh415 per share.

The company plans to pursue the remaining balance through arbitration in London, as laid out in the concession agreement.

“The involuntary suspension of Umeme’s trading counter on the USE has been extended until 12th June 2025. The further extension is based on Umeme’s notice dated June 2, 2025, to the effect that the good faith negotiations with the government of Uganda did not arrive at a resolution on the payment of Umeme’s entire claim which stands in the sum of $292m over and above the admitted Buy Out Amount of $118m already paid by the government,” USE said in a statement.

The USE also granted Umeme more time to release its audited financial results for the year ending December 31, 2024. These will now be published on June 12, 2025.